Jul 27, 2017
TSX closes up as Cenovus, energy stocks lift index
, Reuters
Canada's main stock index eked out a small gain on Thursday, as higher oil prices broadly boosted energy stocks and Cenovus Energy Inc (CVE.TO) soared after saying asset sales could exceed its estimates, while Goldcorp Inc weighed as its earnings disappointed.
The Toronto Stock Exchange's S&P/TSX composite index ended up 19.97 points, or 0.13 per cent, at 15,191.36, with advancers and decliners evenly matched overall.
Goldcorp's fall, ending down 6.2 per cent at $16.07 as production at several sites missed expectations, bucked the trend among gold miners, a string of whom rose on positive earnings surprises.
Barrick Gold Corp (ABX.TO), the world's largest gold miner by production, rose 2.9 per cent to $20.76, as investors cheered the news it had produced more gold than expected and lowered its costs.
Other rising bullion stocks included Detour Gold Corp (DGC.TO), which surged 13.3 per cent to $15.66 as its profit beat estimates, and Kirkland Lake Gold Ltd (KL.TO), up 6.1 per cent at $12.46 after doubling its estimate of reserves at one of its sites.
Energy stocks were up two per cent overall, with crude jumping to near eight-week highs as a much steeper than expected decline in U.S. inventories encouraged hopes the global crude glut would recede.
Peter Imhof, a portfolio manager at AGF Investments, said Canadian energy stocks were still lagging recent gains in crude prices, in part weighed by a rising Canadian dollar.
Cenovus jumped 9.5 per cent to $10.89 after reporting a profit versus a year-ago loss and providing the divestiture update.
"That stock has been oversold the most because there was a terrible financing that happened" that led to a selloff, with the good news on the day providing the impetus for a bounceback, Imhof said.
West Fraser Timber Co Ltd (WFT.TO) gained 5.1 per cent to $65.84 after acquiring U.S. assets.
Uranium miner Cameco Corp (CCO.TO) gained 3.3 per cent to $12.96 after saying it had settled a U.S. tax dispute for a fraction of the original claim, which helped investors look past the company reporting a wider-than-expected quarterly loss.
