Canadian stocks ended lower Monday, led by declining resource stocks amid global economic growth concerns after Japan's economy grew at a much slower rate than expected in the second quarter.
Japan's gross domestic product added just 0.3 percent in the second quarter of 2012 compared to the previous three months, the Cabinet Office said on Monday. The preliminary reading suggests recovery from the March 2011 earthquake and tsunami remains stuck in neutral. The headline figure missed forecast that indicated an increase of 0.6 percent following the 1.6 percent gain in the first quarter.
Also contributing to the gloom was German economy minister Philipp Roesler, who expressed disappointment at Greece's efforts to implement necessary reforms tied to its international aid program. Elsewhere in Europe, Italy raised 8 billion euros through a 12-month bill auction, but at a slightly higher interest rate compared to an earlier auction.
The S&P/TSX Composite Index closed Monday at 11,838.33, a decline of 52.56 points or 0.44 percent. The Index touched an intraday high of 11,913.13 and a low of 11,802.86.
The Metals & Mining Index dropped 1.27 percent, with Teck Resources Limited (TCK.B.TO) down 2.47 percent and First Quantum Minerals Ltd. (FM.TO) down 0.10 percent. Lundin Mining Corp. (LUN.TO) shed 0.87 percent.
The Financial Index edged down 0.08 percent with Bank of Nova Scotia (BNS.TO) slipping 0.27 percent, Royal Bank of Canada (RY.TO) down 0.49 percent, and Toronto-Dominion Bank (TD.TO) surrendering 0.29 percent. Manulife Financial Corp. (MFC.TO) gained 2.46 percent.
The Energy Index shed 0.69 percent with U.S. crude oil futures for September delivery dropping $0.14 or 0.2 percent to close at $92.73 a barrel Monday on the NYMEX.
Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) shed 2.58 percent, Suncor Energy Inc. (SU.TO) lost 0.66 percent, Encana Corp. (ECA.TO) slipped 2.70 percent, and Progress Energy Resources Corp. (PRQ.TO) was down 0.98 percent.
The Global Gold Index slipped 1.20 percent, with gold futures for December delivery shedding $10.20 or 0.6 percent to close at $1,612.60 an ounce Monday on the NYMEX. The Capped Materials Index shed 1.25 percent.
Among gold stocks, Kinross Gold (K.TO) slipped 2.08 percent, Barrick Gold Corp. (ABX.TO) declined 0.99 percent, and Eldorado Gold Corp. (ELD.TO) was down 1.67 percent.
Among heavyweights, fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) shed 1.02 percent, while aerospace and transportation company Bombardier Inc. (BBD_A.TO, BBD_B.TO) ended flat with yesterday. Smartphone maker Research In Motion (RIM.TO) surrendered 2.43 percent.
Sonde Resources Corp. (SOQ.TO) plummeted over 39 percent after reporting a much wider second quarter net loss.
Ensign Energy Services (ESI.TO) shed 1.08 percent. The company posted improved second-quarter adjusted net income of C$16.54 million or C$0.11 per share compared to C$18.94 million or C$0.12 per share a year ago. Analysts expected earnings of C$0.18 per share in the quarter.
Food and beverages company Asia Bio-Chem Group (ABC.TO) slipped 12.50 percent after reporting a net loss of C$8.2 million or C$0.10 per share compared to a profit of C$1.3 million or C$0.02 per share in the year ago quarter. Analysts expected a loss of C$0.05 per share in the quarter.
Gold miner Yukon-Nevada Gold Corp. (YNG.TO) ended flat with yesterday, after slipping to a second-quarter net loss of $8.31 million or $0.01 per share, compared to net income of $22.92 million or $0.03 per share a year ago.
Africa focused diamond explorer Lucara Diamond Corp. (LUC.TO) lost nearly 10 percent after reporting its second-quarter net loss widened to $7.6 million from $5.9 million in the year ago quarter
Pump and pumping equipment company WaterFurnace Renewable Energy. (WFI.TO) eased 0.18 percent after reporting a lower second-quarter net income of $2.2 million or $0.18 per share compared to $3.4 million or $0.28 per share in the comparable quarter last year.
Meanwhile, agriculture and construction equipment dealer Rocky Mountain Dealerships (RME.TO) gained over 4 percent, despite posting lower second-quarter net earnings of C$1.6 million or C$0.08 per share versus C$4.46 million or C$0.23 per share a year ago. Normalized earnings declined to C$0.26 per share from C$0.30 per share in the same quarter a year earlier.
Oil and gas industry services provider Hyduke Energy Services Inc. (HYD.TO) ended flat after announcing shareholder approval for the acquisition proposed by Do All Industries Ltd.
Real estate company Chartwell Seniors Housing Real Estate Investment Trust (CSH_UN.TO) added 2.22 percent after reporting second-quarter Funds from operations of C$29.8 million or C$0.17 per unit compared to C$24.1 million or C$0.17 per unit in the second quarter of 2011.
In economic news from the eurozone, wholesale price inflation in Germany rose more than expected in July, data from the Federal Statistical Office showed. Wholesale price inflation rose to 2 percent in July from 1.1 percent in June. This was expected to rise to 1.3 percent. On a monthly basis, prices increased 0.3 percent against expectations for a 0.4 percent decline. This comes after a 1.1 percent month-on-month decline in June and 0.7 fall in May.
Elsewhere in Europe, U.K. business sentiment reached its lowest level this year with economic prospects following a zigzag path, the Business Trends report by accountants and business advisers BDO LLP showed Monday. The optimism index slipped to 93.1 in July from 93.5 in June, for a fifth consecutive month. Confidence in the manufacturing sector improved notably to 90.5 from 83.8 in June. The increase was the highest monthly rise since February 2011.
by RTT Staff Writer
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