News Column

TSX up with oil prices

June 13, 2014



Investors digesting Ont. Liberal win





WEEKLY MARKET WRAP UP



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 91.98 points to finish the day and week at 15,001.61

The Canadian dollar were unchanged on the day at 92.12 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 $5.87, to $19.95.

To the energy field, now, where Imperial Oil jumped 41 cents to $55.76, while Crew Energy soared 53 cents, or 4.8%, to $11.51, and Advantage Oil and Gas advanced 19 cents, or 2.6%, to $7.53.

Among base metals, Teck Resources tacked on a dime to $23.29, while Sherritt International vaulted 16 cents, or 3.6%, to $4.55

Weighing the index down somewhat were health-care issues, as Valeant Pharmaceuticals dove $1.53, or 1.2%, to end the week at $129.59.

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.

ON BAYSTREET

The TSX Venture Exchange dipped 0.64 points to 997.33

Nine of the 14 Toronto subgroups were higher, with energy stocks bolting 2%, global base metals advancing 0.9%, and industrials gaining 0.8%.

The five laggards were weighed mostly by health-care stock, less hale by 0.5%, while real-estate and utilities each surrendered 0.2%

ON WALLSTREET

Markets were in a feisty mood Friday. From Iraq to Priceline, there was a lot for investors to weigh, but stocks finished up.

The Dow Jones Industrials gained 41.55 points to close at 16,775.74

The S&P 500 gained 6.05 points to 1,936.10, and the NASDAQ composite index remained positive 13.02 points to 4,310.65. All three indices ended the week down with the Dow 0.88% lower.

Priceline said it was buying restaurant reservations site OpenTable for $2.6 billion U.S. Shares of OpenTable skyrocketed over almost 50%, trading over the


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

Citigroup shares slid after reports that the Justice Department is seeking a $10-billion U.S. settlement from the bank over its role in selling mortgage-backed bonds in the lead up to the financial crisis.

The stock is down around 9% in 2014 and earlier in the year had its plan to increase its dividend and launch a share buyback program rejected by the Federal Reserve.

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. PC-maker Hewlett-Packard and Microsoft got a nice boost as well.

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 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 they slid Friday and are still down by 23% for the 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 2.60% from Thursday's 2.59%. Treasury prices and yields move in opposite directions

Oil prices pushed up 31 cents to $106.84 U.S. a barrel.

Gold prices gained 10 cents at $1,276.90 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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