News Column

Furore eases, stocks rise

August 11, 2014

Real-estate, tech stocks lead parade

Equities in Canada's biggest market climbed on Monday as an easing of tensions in Ukraine helped drive up shares of all major sectors.

The S&P/TSX composite index gained 65.33 points to close Monday at 15,261.64

The Canadian dollar added 0.39 cents at 91.55 cents U.S.

Financials, rose as Toronto Dominion Bank gained 1.6% to $56.48, and Bank of Nova Scotia added 0.7% to $72.05

Shares of energy producers received support from higher oil prices. Enbridge advanced 0.1% to $53.52, and Encana was up 0.4%, at $23.90.

Real-estate stocks fared best on the day, led by Brookfield Asset Management, which spiked $1.67, or 3.4%, to $50.96.

Information technology were also triumphant, most notably Celestica, up 28 cents, or 2.5%, to $11.67, while BlackBerry shares picked up a nickel to $10.39.

An announcement by Russia late last week that it had ended military exercises near the Ukraine border has boosted global equity markets.

On the economic slate, Canada Mortgage and Housing Corporation said housing starts increased to a seasonally adjusted annual pace of 189,784 in July, compared with 185,952 in June.


The TSX Venture Exchange eked up 1.40 points to 998.87

All but two of the 14 Toronto subgroups were up on the day, with real-estate hoisted 1.2%, information technology stocks up 0.9%, and consumer staples up 0.8%.

The two naysayers were metals and mining, down but 0.04%, and health-care, off 0.01%, neither speaking too loudly.


U.S. stocks advanced Monday, though continued tensions in Ukraine and the Middle East put a cap on the S&P 500's gains.

The Dow Jones Industrials held onto gains of 16.05 points to 16,569.98

The S&P 500 advanced 5.33 points to 1,936.92. The NASDAQ composite tacked on 30.43 points to 4,401.33.

Monday's rally is being described as a relief rally after a selloff during the previous two weeks. The near-4% pullback on the S&P 500 began as investors fretted the U.S. Federal Reserve might raise rates sooner than expected in light of recent economic data that were stronger than expected.

Shares of Mannkind rallied 4.6% after the company reached a licensing deal with Sanofi to develop and sell inhaled insulin drug Afreeza in the U.S.

Shares of Tesla Motors Inc. rallied 4.6% after an upgrade to buy from Deutsche Bank. The bank also increased its price target on the stock to $310, from $220 U.S. a share.

Shares of Dean Foods slumped 3.9% after the milk and food company reported a wider-than-expected loss and withdrew its full-year outlook.

Kinder Morgan jumped 8.8% following plans to consolidate its oil-and-gas pipeline empire into a single company in a $44-billion U.S. deal.

The United States recently launched air strikes in Iraq targeting Islamic State fighters marching on the country's Kurdish capital. The U.S. is also pushing for a new Iraq government, which Prime Minister Nuri al-Maliki has been battling to prevent, deploying forces across Baghdad as some parliamentary allies sought a replacement.

Separately, Israel and the Palestinians agreed on Sunday to an Egyptian proposal for a new 72-hour ceasefire in Gaza.

Prices for 10-year U.S. Treasuries were unchanged on the day, keeping yields at Friday's 2.42%. Treasury prices and yields move in opposite directions.

Oil prices gained 33 cents to $97.97 U.S. a barrel.

Gold prices dropped 70 cents at $1,310.30 U.S. an ounce.

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Source: Baystreet Stock Market Update (Canada)

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