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TSX Poised To Recover Recent Losses - Canadian Commentary

TSX Poised To Recover Recent Losses - Canadian Commentary
3/5/2013 8:54 AM ET

Canadian stocks are poised for a positive open Tuesday as commodities and global equities recovered amid hopes that central bankers globally will take actions for the continuation of stimulus measures to spur growth. Monday, Federal Reserve Vice Chairman Janet Yellen said the central bank should continue to buy bonds until the unemployment stays stubbornly high.

U.S. stock futures were pointing to a higher open.

On Monday, the S&P/TSX Composite Index extended losses for a second session, dipping 65.71 points or 0.51 percent to 12,707.41.

The price of crude oil was ticking higher Tuesday morning as traders await more cues from the U.S. automatic budget cuts came into effect last week. Today after the market hours, the API will release its US crude oil inventories report for the weekended March 01. Crude for April edged up $0.48 to $90.60 a barrel.

The price of gold as moving higher Tuesday morning amid speculation of a rate cut out of Europe this week and on mixed US dollar. Gold for April gained $11.60 to $1,584.00 an ounce.

In corporate news from Canada, Scotiabank (BNS.TO) reported that its first quarter net income increased to C$1.504 billion from C$1.343 billion in the year ago quarter. Earnings per share were C$1.25, compared to C$1.20 in the same period a year ago. Adjusted earnings per share for the quarter was C$1.27 up from C$1.22 in the comparable quarter last year and higher than consensus estimates of C$1.25 per share.

Food products dealer and wholesaler Colabor Group (GCL.TO) announced the completion of the acquisition T. Lauzon Ltd and certain inventory of a related entity to T. Lauzon for a total consideration of about $13 million.

Gold miner Aurizon Mines Ltd. (ARZ.TO) reiterated its recommendation that shareholders 'reject' the previously announced offer by Alamos Gold Inc. (AGI.TO). Aurizon also reiterated its recommendation that Aurizon shareholders support the arrangement whereby Hecla Mining Co. (HL) will acquire all of the outstanding common shares of Aurizon.

Mobile equipment company Wajax Corp. (WJX.TO) said its net earnings for the fourth quarter dropped to C$14.2 million or C$0.84 per share from C$16.6 million or C$0.98 per share recorded in 2011.

Precious metals miner Golden Star Resources (GSS.V) reported fourth-quarter net income of $9.12 million or $0.04 per share higher than $7.24 million or $0.03 per share last year. Analysts expected earnings of $0.01 per share on revenue of $154.35 million for the quarter.

In economic news, an indicator of eurozone's service sector activity declined in February, but the rate of fall was less steeper than estimated earlier, detailed results of a survey by Markit Economics showed. The services activity index rose to 47.9 in February from 48.6 in January. The flash reading was 47.3. An index reading below 50 indicates contraction of the sector.

Retail sales in the eurozone increased more than economists expected in January, recovering from the previous month's decrease, latest data showed. Retail sales volume increased 1.2 percent on a monthly basis in January, reversing the previous month's 0.8 percent decrease, which was revised from 0.9 percent, statistical office Eurostat said. Economists had forecast sales to rise 0.3 percent.

Elsewhere, Germany's private sector expanded more than estimated in February, survey data from Markit Economics showed. The final composite output index - which measures the combined output of the manufacturing and service sectors, came in at 53.3 in February, above the flash estimate of 52.7.

by RTT Staff Writer

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