TSX DIPS ON MIXED COMMODITIES
TORONTO • The Toronto stock market lost ground on Wednesday as prices for commodities remained mixed, and the banking sector weakened.
The S&P/TSX composite index fell 56.59 points to close at 12,412.73.
The Canadian dollar fell US0.44¢ to US95.94¢.
The TSX financial sector was off 0.7%, pulled down by reports that the U.S. government has accused Bank of America Corp. of civil fraud.
Wall Street extended its declines into a third session this week, with the Dow down 48.07 points to 15,470.67, Nasdaq off 11.76 points to 3,654.01 and S&P 500 slipping 6.46 points to 1,690.91.
Meanwhile, questions percolated over the timing of the U.S. Federal Reserve’s removal of monetary stimulus by tapering off its current bond-buying program.
Comments from Fed officials have been in focus over the past day after two regional presidents said the central bank could make its moves to slow stimulus in the shorter term, though the exact timing was left to interpretation.
The Fed won’t make an official statement until next month, which has put extra weigh on more off-the-cuff remarks.
“The whole reaction to the Fed is overblown because [they have] not said they’re raising rates. The Fed said they may start to taper asset purchases down the road,” said Paul Vaillancourt, managing director at Fiera Capital in Calgary.
“The economy doesn’t need artificial life support anymore, and that’s a good-news story. Come September, market investors will view it that way. Right now they just need to digest that. Wise investors are making their moves now and getting ready for a big rally in September.”
In commodities, December bullion gained US$2.90 to US$1,286.10 an ounce, ending six sessions of losses. September copper was unchanged at US$3.18.
The September crude contract on the New York Mercantile Exchange moved down US93¢ to US$104.37 a barrel, following the latest supplies report. The U.S. Energy Information Administration said crude supplies fell 1.3 million barrels for the week ended Aug. 2.
Shares of Athabasca Oil Corp. were up nearly 11% after the Alberta Energy Regulator signed off Tuesday on the Dover oil sands project. The move green-lights Brion Energy Corp. to begin construction, subject to 10 conditions related to the operations of the project.
The Dover project was initially opposed by the First Nations on the Fort McKay reserve lands, but the regulator said that the project would have little impact on the band. Athabasca gained 75¢ to $8.12.
Meanwhile, in earnings, Air Canada shares rose 25 % in early trading after the carrier came in far ahead of analysts’ predictions with adjusted net income of $115-million in the second quarter. The results marked a big improvement from a year ago when it reported an adjusted net loss of $7-million. The company’s stock was up 53¢ to $2.65.
And Valeant Pharmaceuticals International Inc. is boosting its guidance for the year after turning out a $11-million profit from a loss in the same period a year ago.