Canadian stocks were extending gains for a second session Tuesday morning as worries over euro zone debt situation subsided after Greece made progress on its debt bailout program, with the European Central Bank promising to step in and buy bonds to ease pressure on Spain and Italy
Meanwhile, troika - inspectors from the International Monetary Fund, the European Commission and the European Central Bank - concluded a visit to Greece and said the nation has made progress in finding budget cuts needed to continue its bailout program but cautioned that more work is needed.
The S&P/TSX Composite Index advanced to a four-week high, gaining 165 22 points or 1.42 percent to 11,827.81.
The Diversified Materials Index gained over 2 percent, with First Quantum Minerals (FM.TO) and Teck Resources (TCK_B.TO) adding close to 5 percent each. Inmet Mining (IMN.TO) jumped over 2 percent
The price of crude oil steady above $93 Tuesday morning on weak dollar and concerns over potential threats to oil supply from the Middle East. Today after the market hours, the API will release its U.S. crude oil inventories report for the weekended August 03. Analysts expect crude oil inventories to dip by 300,000 barrels and gasoline stocks to shed 2 million barrels last week. Crude for September was up $0.94 to $93.14 a barrel.
In the oil patch, Canadian Natural Resources (CNQ.TO) and Canadian Oil Sands (COS.TO) gathered around 3 percent each.
Cenovus Energy (CVE.TO) and Baytex Energy Corp. (BTE.TO) gathered around 3 percent each.
International energy company Gran Tierra Energy Inc. (GTE.TO)gained over 3 percent despite reporting that its second-quarter net income was $13.1 million or $0.05 per share down from $31.6 million or $0.11 per share for the comparable quarter in 2011. Analysts were expecting the company to report earnings of $0.09 per share for the quarter.
The price of gold was flat amid a weak U.S. dollar, with gold for December easing $2.20 to $1,614.00 an ounce.
Gold miner Allied Nevada Gold (ANV.TO) surged close to 5 percent, while Royal Gold (RGL.TO) and Agnico-Eagle Mines (AEM.TO) were adding about 2 percent each.
Precious metals miner Tahoe Resources Inc. (THO.TO) soared close to 10 percent
Aviation-training and simulation products provider CAE, Inc. (CAE.TO) edged up 0.40 percent after it said it has sold three full-flight simulators to Air China Ltd., worth a total of C$42 million at list prices.
Telecommunications company Telus Corp. (T.TO) reported a marginal rise in its second quarter net income at C$328 million or C$1.00 per share compared to C$324 million or C$0.98 per share in the prior-year quarter. Analysts were expecting the company to report earnings of C$1.01 per share for the quarter. Further, the company marginally raised its 2012 revenue guidance by C$50 million to a range of C$10.75 billion to C$11.05 billion from the prior range between C$10.70 billion and C$11.00 billion. The stock gained 2 percent.
Meanwhile, Imax Corp. (IMX.TO) lost over 3 percent. Yesterday, the company announced that India's leading cinema brand agreed to install an IMAX® theatre system.
Oil and gas industry services provider Pason Systems Inc. (PSI.TO) eased 0.25 percent after reporting second-quarter net profit of C$8.47 million or C$0.10 per share, compared to C$8.22 million or C$0.09 per share last year.
In economic news, Statistics Canada said total value of building permits fell 2.5 percent to $6.8 billion in June, after gaining 7.1 percent in May. The decline was largely the result of a decrease in the non-residential and residential sectors in Alberta and British Columbia. Contractors took out $2.5 billion worth of permits in the non-residential sector, down 12.3 percent. This decrease followed a 3.6 percent gain in May.
From the euro zone, German manufacturing orders declined more than expected in June, the latest figures from the Federal Ministry of Economy and Technology showed. Factory orders fell 1.7 percent month-on-month in June compared to expectations for a 0.8 percent drop. In May, orders recorded a 0.7 percent increase.
Meanwhile, Production in the British industrial sector shrank notably in June mainly due to extra holidays for the Queen's Diamond Jubilee celebrations, the latest figures from the Office for National Statistics showed.
by RTT Staff Writer
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