News Column

TSX nears recent high as energy perks

June 13, 2014

Iraq situation heightens tensions

The Toronto stock market rose Friday as the price of oil hit nearly $107 U.S. a barrel amid concerns that crude supplies could be put at risk if the insurgency in Iraqi continues.

The S&P/TSX composite index gained 69.85 points to greet noon at 14,979.48

The Canadian dollar fell 0.11 cents to 92.01 cents U.S.

Montreal's Amaya Gaming Group Inc. says it's buying the company that owns PokerStars and Full Tilt Poker for $4.9 billion U.S. in an all-cash deal.

Amaya says the transaction will create the world's largest publicly traded online gaming company with its acquisition of the Oldford Group, parent company of the Rational Group Ltd. Online poker platforms PokerStars and Full Tilt Poker are globally popular brands with more than 85 million registered players on desktop and mobile devices.

Shares in Amaya jumped 42%, or $5.86, to $19.94 in mid-morning trading on the Toronto Stock Exchange.

Shares of energy producers gained as Suncor Energy jumped 1.7% to $46.23, and Canadian Natural Resources climbed 1.5% to $47.76.

Financials, gained with Royal Bank, which was up 0.6% at $75.10, and Bank of Nova Scotia rose 0.2% to $70.56.

The materials sector, which includes mining stocks, slipped with Goldcorp giving back 0.7% to $27.

In corporate news, sources told Reuters that Talisman Energy was reviewing its Asian oil and gas portfolio, valued at about $4 billion, which could lead to a partial or full sale. The stock advanced 2% to $11.48.

Meanwhile, voters in Ontario looked past a slew of Liberal scandals, opting to elect Kathleen Wynne as premier of a majority Liberal government on Thursday.

On the economic slate, Statistics Canada reported that manufacturing sales edged down 0.1% in April to $50.9 billion, the first drop in four months.


The TSX Venture Exchange dipped 3.16 points to 994.81

Eight of the 14 Toronto subgroups were higher, with energy stocks up 1.6%, industrials up 1%, and global base metals advancing 0.7%.

The half-dozen laggards were weighed mostly by gold stocks, down 1%, materials, down 0.5%, and health-care, less hale by 0.4%.


Markets continued to be feisty Friday. From Iraq to Priceline, there's much for investors to weigh.

The Dow Jones Industrials gained 32.59 points to 16,766.78

The S&P 500 gained 4.61 points to 1,934.72, and the NASDAQ composite index remained positive 11.31 points to 4,308.94.

Priceline on Friday said it was buying restaurant reservations site OpenTable for $2.6 billion U.S. Shares of OpenTable skyrocketed almost 50%, trading over the $103 a share sale price, while Priceline fell.

Other internet stocks catering to local businesses soared on the news as well, including Yelp, Groupon, and Grubhub

Moreover, Intel powered forward by almost 7% after the company announced a more positive outlook for the second quarter. Business PC purchases are picking up, according to Intel. Rival Hewlett-Packard also got a nice boost.

Investors were also keeping an eye on DreamWorks, which releases the second installment of its widely popular "How to Train Your Dragon" saga over the weekend.

The independent media company is hoping a good box office showing for that film will make up for the less-than-stellar performance of its "Mr. Peabody and Sherman" earlier this year. DreamWorks shares have gotten a lift in the past month, but are still down over 20% this year.

Concerns about increasing instability in Iraq continued to rattle the oil markets and raise a red flag in the stock market. Crude oil prices are trading at nine-month highs, pushing higher to almost $107 U.S. per barrel. Large areas of the country have been overrun by militants, raising fears that oil production and exports could be hit.

Oil prices were last this high in September 2013. On Thursday, oil jumped by more than 2%.

And a key measure of inflation, the Producer Price Index, fell unexpectedly into negative territory Friday, raising concerns about slower growth in the U.S.

Prices for 10-year U.S. Treasuries dropped, raising yields to 2.61% from Thursday's 2.59%. Treasury prices and yields move in opposite directions

Oil prices pushed up 10 cents to $106.63 U.S. a barrel.

Gold prices gained 10 cents at $1,274.10 U.S. an ounce.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Baystreet Stock Market Update (Canada)

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