Canadian stocks ended lower Monday, led by mining and energy issues as investors remained cautious ahead of the upcoming central bankers conference at Jackson Hole, Wyoming. As well, eurozone concerns continued to persist with a downbeat assessment of the business climate in Germany weighing on investor sentiment.
The S&P/TSX Composite Index closed Monday at 12,048.82, down 33.41 points or 0.28 percent. The Index touched an intraday high of 12,100.16 and a low of 12,030.63.
Crude oil ended lower Monday as worries over supply disruptions eased amid speculation that Tropical Storm Isaac will have little impact on production in the oil-rich Gulf of Mexico.
The Energy Index edged down 0.10 percent with U.S. crude oil futures for October delivery dropping $0.68 or 0.7 percent to close at $95.47 a barrel Monday on the NYMEX.
Among energy stocks, Talisman Energy Inc. (TLM.TO) gained 3.47 percent, Canadian Natural Resources Limited (CNQ.TO) slipped 1.22 percent, and Suncor Energy Inc. (SU.TO) edged up 0.06 percent. Encana Corp. (ECA.TO) gained 2.65 percent.
The Financial Index gained 0.25 percent with earnings report coming up shortly from major banks. Royal Bank of Canada (RY.TO) edging up 0.34 percent, Bank of Nova Scotia (BNS.TO) up 0.91 percent, and Toronto-Dominion Bank (TD.TO) up 0.06 percent.
The Metals & Mining Index declined 0.90 percent, with Lundin Mining Corp. (LUN.TO) down 2.16 percent and First Quantum Minerals Ltd. (FM.TO) down 1.40 percent. Osisko Mining Corp. (OSK.TO) fell 2.91 percent, while Teck Resources Limited (TCK.B.TO) was down 0.17 percent.
The Global Gold Index dropped 1.47 percent, although gold futures for December delivery gained $2.70 to close at $1,675.60 an ounce Monday on the NYMEX. The Capped Materials Index shed 1.09 percent.
Among gold stocks, Barrick Gold (ABX.TO) dropped 0.72 percent, Yamana Gold Inc. (YRI.TO) slipped 1.26 percent, Eldorado Gold Corp. (ELD.TO) dropped 1.71 percent, and Kinross Gold (K.TO) shed 1.79 percent.
Among heavyweights, fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) dropped 1.09 percent, while transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) gained 0.28 percent.
The Information Technology Index gained 0.09 percent, with smartphone maker Research In Motion (RIM.TO) gathering 1.89 percent.
Uranium miner Cameco Corp (CCO.TO) eased 1.02 percent after announcing it would acquire Yeelirrie uranium deposit in Western Australia, owned by mining giant BHP Billiton Ltd for $430 million.
Precious metals miner Inter-Citic Minerals Inc. (ICI.TO) soared over 37.24 percent to C$1.99 after it agreed to be acquired by Western Mining Group Co., by way of a plan of arrangement for C$2.05 per share in cash, valuing the company at about C$250 million.
Asset management company Dundee Corp. (DC_A.TO) slipped 0.40 percent after having acquired, in a private placement, 5 million units of Canadian Orebodies Inc. (CO.V) at a price of $0.20 per unit.
In economic news from the eurozone, Germany's business sentiment deteriorated for the fourth consecutive month in August, reports citing survey results from Ifo Institute said. The business confidence index dropped more than expected to 102.3 in August from 103.3 in the prior month. The reading was forecast to ease to 102.8. Assessment of current conditions dropped in August to 111.2 from 111.5.
Adding to the woes, was a report that Greece's progress on economic reforms by the European Commission, European Central Bank and the International Monetary Fund or the troika, will be delayed until early October, according to Germany's Rheinische Post.
Elsewhere, China's industrial profits declined for the fourth consecutive month in July, the National Bureau of Statistics revealed Monday. The down trend is adding pressure on the government to ease policies. In July, profits were down 5.4 percent annually to RMB 366.8 billion. That follows a 1.7 percent fall in June. During January to July, industrial profits dipped 2.7 percent from a year ago. Meanwhile, oil refining, coke and nuclear fuels, swung to a loss from a profit.
by RTT Staff Writer
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