Canadian shares were steady as the West's sanctions against Russia after Crimea’s disputed vote on breaking with Ukraine undermined positive economic data from the U.S., the nation's biggest trading partner.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) was little changed at 14,225.48 at 12:13 p.m. in Toronto, paring earlier gains. Six of the 10 main industries advanced.
The U.S. and European Union slapped sanctions on Russia in the worst dispute between former Cold War foes in more than two decades. EU foreign ministers agreed to freeze assets and impose visa travel bans on 21 Russians, Crimeans and former Ukrainian officials. U.S. measures were aimed at the wealth of Russia’s supporters, the White House said in a statement. While Western leaders left open the option of extending the sanctions, they kept more punitive steps in reserve.
Data from the Federal Reserve today showed factory production in the U.S. rose in February. The 0.8 percent gain at manufacturers followed a revised 0.9 percent slump in the prior month that was the biggest since May 2009. The median forecast called for a 0.3 percent advance.
A gauge of manufacturing in the New York area rose less than forecast last month, climbing to 5.61 from 4.48. Analysts estimated 6.50.
The S&P/TSX index's second most heavily weighted group, the energy sector, surrendered 0.2 percent as oil, Canada’s largest export, declined on speculation that Crimea’s vote to leave Ukraine and join Russia is unlikely to disrupt oil shipments.
Suncor Energy Inc. (TSE:SU), the nation's largest energy company by market value, dropped 0.4 percent to C$36.07. Canadian Natural Resources Ltd. (TSE:CNQ), the second-largest energy company, fell 0.8 percent to C$39.46.
West Texas Intermediate for April delivery dropped 1.1 percent to $97.76 a barrel at 11:52 a.m. on the New York Mercantile Exchange.
Encana Corp. (TSE:ECA) (NYSE:ECA), Canada’s largest natural gas producer, edged up 0.2 percent to $22.50. The company is in talks to sell its Wyoming natural gas fields to private equity firms Carlyle Group and NGP Energy Capital Management for about $2 billion, the Wall Street Journal reported.
TransGlobe Energy Corp. (TSE:TGL), a Canadian oil producer focused on Egypt, rose 3.2 percent to C$8.68. The company agreed to be acquired by Caracal Energy Inc. (LON:CRCL), which operates in Chad, for about C$696.2 million in stock, in a move that will create a group valued at $1.8 billion.
Imperial Oil Ltd. (TSE:IMO), which is majority owned by Exxon Mobil Corp. (NYSE:XOM), slid 0.3 percent to C$50.90 after rallying to as high as C$51.46. The company has agreed to sell light and natural gas assets in Western Canada to Whitecap Resources Inc. (TSE:WCP) for C$855 million. Whitecap jumped 4 percent to C$11.99. Whitecap said its annual production will grow to the equivalent of 33,500 barrels per day of oil and gas after the acquisition, allowing it to increase its monthly dividend by 10 percent.
Ensign Energy Services Inc. (TSE:ESI) declined 3.6 percent to C$16.26 after reporting lower-than-estimated profit on weaker demand for drilling services.
The materials sub-index, which includes mining shares, fell 0.6 percent even as gold prices traded near six-month high. Barrick Gold Corp. (TSE:ABX) declined 1.4 percent to $22.87. Goldcorp Inc. (TSE:G) slumped 1.9 percent to C$31.24.
Gold for April delivery inched up 0.2 percent to $1,376.80 an ounce by 11:57 a.m. on the Comex in New York.
The financials group, which accounts for 34 percent of the main measure, more than any other group, advanced 0.2 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, dipped 0.1 percent to C$71.08, erasing earlier gains. Toronto-Dominion Bank (TSE:TD), the second-largest bank, was up 0.2 percent at C$51.32.
The industrials group, the fourth heaviest on the index, jumped 0.8 percent. Bombardier Inc. (TSE:BBD.B), the world's only manufacturer of both planes and trains, rose 4.6 percent to C$4.14,the highest intraday price in more than a month. The company won a C$1 billion order to deliver 240 240 TRAXX Africa electric locomotives to Transnet Freight Rail (TFR), South Africa’s state-owned ports and rail operator.
In corporate news, Catalyst Capital Group Inc., a Toronto-based private equity firm, plans an initial public offering of 35 percent of its unit that makes loans to companies unable to find traditional financing.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) put on 0.5 percent to 1,038.38 at 12:07 p.m. in Toronto. Africa Oil Corp. (CVE:AOI), the heaviest stock in the gauge, strengthened 1.1 percent to C$8.69. The 348-company measure, where energy and materials producers account for 84 percent of its weighting, had gained 11 percent this year through March 14.
In the U.S., shares advanced as better-than-expected data on industrial output raised optimism on the economy and investors monitored developments in Ukraine. The S&P 500 (INDEXSP:.INX) added 0.7 percent at 11:28 a.m. in New York. The 30-member Dow Jones Industrial Average (INDEXDJX:.DJI) jumped 0.9 percent, and the tech-heavy Nasdaq Composite (INDEXDJX:.DJI) gained 0.8 percent. Most followed shares included Yahoo, Vodafone Group, Hertz Global Holdings, Sears Holdings, Toyota Motor, GNC Holdings, United Parcel Services, JA Solar, Encana and Lorillard. Reported by Proactive Investors 8 hours ago.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) was little changed at 14,225.48 at 12:13 p.m. in Toronto, paring earlier gains. Six of the 10 main industries advanced.
The U.S. and European Union slapped sanctions on Russia in the worst dispute between former Cold War foes in more than two decades. EU foreign ministers agreed to freeze assets and impose visa travel bans on 21 Russians, Crimeans and former Ukrainian officials. U.S. measures were aimed at the wealth of Russia’s supporters, the White House said in a statement. While Western leaders left open the option of extending the sanctions, they kept more punitive steps in reserve.
Data from the Federal Reserve today showed factory production in the U.S. rose in February. The 0.8 percent gain at manufacturers followed a revised 0.9 percent slump in the prior month that was the biggest since May 2009. The median forecast called for a 0.3 percent advance.
A gauge of manufacturing in the New York area rose less than forecast last month, climbing to 5.61 from 4.48. Analysts estimated 6.50.
The S&P/TSX index's second most heavily weighted group, the energy sector, surrendered 0.2 percent as oil, Canada’s largest export, declined on speculation that Crimea’s vote to leave Ukraine and join Russia is unlikely to disrupt oil shipments.
Suncor Energy Inc. (TSE:SU), the nation's largest energy company by market value, dropped 0.4 percent to C$36.07. Canadian Natural Resources Ltd. (TSE:CNQ), the second-largest energy company, fell 0.8 percent to C$39.46.
West Texas Intermediate for April delivery dropped 1.1 percent to $97.76 a barrel at 11:52 a.m. on the New York Mercantile Exchange.
Encana Corp. (TSE:ECA) (NYSE:ECA), Canada’s largest natural gas producer, edged up 0.2 percent to $22.50. The company is in talks to sell its Wyoming natural gas fields to private equity firms Carlyle Group and NGP Energy Capital Management for about $2 billion, the Wall Street Journal reported.
TransGlobe Energy Corp. (TSE:TGL), a Canadian oil producer focused on Egypt, rose 3.2 percent to C$8.68. The company agreed to be acquired by Caracal Energy Inc. (LON:CRCL), which operates in Chad, for about C$696.2 million in stock, in a move that will create a group valued at $1.8 billion.
Imperial Oil Ltd. (TSE:IMO), which is majority owned by Exxon Mobil Corp. (NYSE:XOM), slid 0.3 percent to C$50.90 after rallying to as high as C$51.46. The company has agreed to sell light and natural gas assets in Western Canada to Whitecap Resources Inc. (TSE:WCP) for C$855 million. Whitecap jumped 4 percent to C$11.99. Whitecap said its annual production will grow to the equivalent of 33,500 barrels per day of oil and gas after the acquisition, allowing it to increase its monthly dividend by 10 percent.
Ensign Energy Services Inc. (TSE:ESI) declined 3.6 percent to C$16.26 after reporting lower-than-estimated profit on weaker demand for drilling services.
The materials sub-index, which includes mining shares, fell 0.6 percent even as gold prices traded near six-month high. Barrick Gold Corp. (TSE:ABX) declined 1.4 percent to $22.87. Goldcorp Inc. (TSE:G) slumped 1.9 percent to C$31.24.
Gold for April delivery inched up 0.2 percent to $1,376.80 an ounce by 11:57 a.m. on the Comex in New York.
The financials group, which accounts for 34 percent of the main measure, more than any other group, advanced 0.2 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, dipped 0.1 percent to C$71.08, erasing earlier gains. Toronto-Dominion Bank (TSE:TD), the second-largest bank, was up 0.2 percent at C$51.32.
The industrials group, the fourth heaviest on the index, jumped 0.8 percent. Bombardier Inc. (TSE:BBD.B), the world's only manufacturer of both planes and trains, rose 4.6 percent to C$4.14,the highest intraday price in more than a month. The company won a C$1 billion order to deliver 240 240 TRAXX Africa electric locomotives to Transnet Freight Rail (TFR), South Africa’s state-owned ports and rail operator.
In corporate news, Catalyst Capital Group Inc., a Toronto-based private equity firm, plans an initial public offering of 35 percent of its unit that makes loans to companies unable to find traditional financing.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) put on 0.5 percent to 1,038.38 at 12:07 p.m. in Toronto. Africa Oil Corp. (CVE:AOI), the heaviest stock in the gauge, strengthened 1.1 percent to C$8.69. The 348-company measure, where energy and materials producers account for 84 percent of its weighting, had gained 11 percent this year through March 14.
In the U.S., shares advanced as better-than-expected data on industrial output raised optimism on the economy and investors monitored developments in Ukraine. The S&P 500 (INDEXSP:.INX) added 0.7 percent at 11:28 a.m. in New York. The 30-member Dow Jones Industrial Average (INDEXDJX:.DJI) jumped 0.9 percent, and the tech-heavy Nasdaq Composite (INDEXDJX:.DJI) gained 0.8 percent. Most followed shares included Yahoo, Vodafone Group, Hertz Global Holdings, Sears Holdings, Toyota Motor, GNC Holdings, United Parcel Services, JA Solar, Encana and Lorillard. Reported by Proactive Investors 8 hours ago.