Canadian stocks were extending gains for a third session Friday morning on expectations of more stimulus measures from both sides of the Atlantic. Yesterday, ECB governor Mario Draghi said the central bank will do whatever is needed to preserve the euro. The comments also raised speculation that ECB, in its upcoming meeting next week, will take drastic measures to tackle the debt situation in the region.
The S&P/TSX Composite Index gained 84.29 points or 0.72 percent to 11,724.04, after adding nearly 200 points or 1.50 percent in the past two sessions.
The price of crude oil was ticking higher Friday morning, with crude for September adding $0.60 to $89.99 a barrel.
In the oil patch, Progress Energy Resources Corp. (PRQ.TO) surged over 12 percent to C$22.62 after announcing that PETRONAS International Corporation Ltd has hiked its take over consideration price from C$20.45 per share to C$22.00 per share.
Niko Resources (NKO.TO) gained 9 percent, while Celtic Exploration (CLT.TO) and ARC Resources (ARX.TO) were adding around 5 percent each.
Among financial plays, National Bank (NA.TO) and TD Bank (TD.TO) moved up around 1 percent each.
The price of gold was firm near its monthly high Friday morning as the dollar was trading mixed, with gold for August gaining $4.10 to $1,619.20 an ounce.
In the gold space, Alamos Gold Inc. (AGI.TO) gained 8 percent.
Eldorado Gold (ELD.TO) gathered 5 percent despite reporting a much lower second-quarter net income of $46.6 million or $0.07 per share compared to $74.9 million or $0.14 per share in the same period last year. Further, the company lowered its 2012 gold production guidance to 660,000 ounces from a previous estimate of 730,000 to 775,000 ounces.
Transportation and logistics services provider TransForce Inc. (TFI.TO) soared 9 percent after posting higher second quarter net income of C$34.1 million or C$0.34 per share versus C$26.2 million or C$0.27 per share a year ago. Adjusted net income increased to C$0.38 per share from C$0.27 per share last year. Analysts were expecting the company to report loss of C$0.36 per share for the quarter.
Integrated wood products company Tembec Inc. (TMB.TO) moved up 5 percent even after slipping into the red in third quarter, reporting net loss of C$5 million or C$0.05 per share, compared to a net profit of C$17 million or C$0.17 per share last year. Analysts were expecting the company to report loss of C$0.03 per share for the quarter.
TransCanada Corp. (TRP.TO) added 1 percent after posting second quarter net income of C$272 million or C$0.39 per share, lower than C$353 million or C$0.50 per share a year ago.
On the negative side, independent power producer Capital Power Corp. (CPX.TO) eased 0.50 percent after reporting a wider second quarter net loss of $32 million or $0.57 per share compared to a loss of $25 million or $0.67 per share in the comparable period last year. However after adjusting for one-time items and fair value adjustments, earnings were C$5 million or C$0.07 per share compared to C$3 million or C$0.07 per share last year. Analysts were expecting the company to report loss of C$0.25 per share for the quarter.
Largely hurt by C$54.4 million (pre-tax) of costs related to the Maple Group Acquisition Corporation's proposed acquisition of TMX Group and the proposed merger with London Stock Exchange Group, Canadian stock market operator TMX Group Inc. (X.TO) reported a sharply lower second-quarter net income, that declined to C$1.8 million from C$54.7 million in the year ago quarter. On a per share basis, net income was C$0.02, down from C$0.73 in the prior year quarter. The stock slipped 0.50 percent.
Electronics products company Celestica Inc. (CLS.TO) inched down 0.25 percent despite posting second quarter IFRS net earnings of $45.7 million or $0.21 per share versus $23.6 million or $0.11 per share last year. Non-IFRS adjusted net earnings per share were $0.27, up from $0.22 last year. Analysts were expecting the company to report loss of C$0.24 per share for the quarter.
Paper products company Domtar Corp. (UFS.TO) moved down 2 percent even after announcing that its second-quarter net earnings rose to $59 million or $1.61 per share, from $54 million or $1.30 per share in the 2011 period. Excluding items, the company had earnings before items of $98 million or $2.37 per share.
In economic news from south of the border, the U.S. Commerce Department said gross domestic product grew at 1.5 percent in the second quarter. That marks a slowdown from the 2 percent growth posted for the first quarter, but a smaller contraction than most economists' prediction of just 1.2 percent growth for the quarter.
Elsewhere, unemployment rate in Spain increased in the June quarter, the latest figures from the statistical office INE showed. The rate rose to 24.63 percent in the second quarter from 24.44 percent in the first quarter. This was almost in line with economists' forecast of 24.65 percent.
by RTT Staff Writer
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