TSX endS week wiTh gain aS dollar diveS
TORONTO • The Toronto stock market gave up a modest gain to close little changed Friday while investors looked to the release of a disappointing read on U.S. home sales last month.
The S&P/TSX composite index slipped 4.65 points to 14,205.72 at the end of a positive week for the Toronto market.
The Canadian dollar continued to pile up losses for a third day, down 0.28 of a cent to US89.82¢ as Statistics Canada said that December retail sales tumbled 1.8% from November. Economists had expected a drop of just 0.4%.
The agency also reported that the Canadian consumer price index was up 1.5% in January compared with a year earlier.
U.S. indexes were lacklustre as the National Association of Realtors said existing house sales dropped 5.1% in January following a 0.8% rise in December.
It was the worst pace in 18 months as cold weather, limited supplies of homes on the market and higher buying costs held back purchases. The drop took the annualized rate of sales down to 4.62-million but analysts said one month of negative data doesn’t change the trend.
“The concern that started to surface last year with the move in interest rates was whether we would see a big impact on mortgage financing — and we did see a temporary slowdown on the housing front,” said Mark Bayko, vice-president and portfolio manager at RBC Wealth Management. “That was cause for some alarm but, thus far, people remain fairly comfortable with the improving trend that has been in place now for quite some time.”
The Dow Jones industrials fell 29.93 points to 16,103.3, while the Nasdaq lost 4.14 points to 4263.41 and the S&P 500 index dropped 3.53 points to 1836.25.
Techs were the biggest TSX drag as BlackBerry shed 24¢ or 2.3% to $10.17.
The gold sector moved down about 0.4% even as April gold gained $6.80 to US$1,323.90 an ounce.
Eldorado Gold Corp. shares were 16¢ lower to $7.96 as the miner posted a US$687.6-million quarterly net loss amid lower values for its assets and reduced gold prices and output. Revenue was $231.7-million, down from US$350-million in the fourth quarter of 2012.
The energy sector rose 0.23% even as crude oil in New York declined US72¢ to US$102.20 a barrel. March copper was up a cent at US$3.29 a pound and the base metals sector rose 0.19%.
Thompson Creek Metals Co. Inc. posted an adjusted net loss of US$28.5-million or 17¢ per share, missing forecasts for a loss of 3¢ a share. Revenue was also below expectations. But its shares rose 26¢ or 8.81% to $3.21 as it also said that it will suspend operations at its molybdenum mine in Idaho by the end of this year due to persistent low prices.
The TSX ended the week with a solid gain of 1.07%, reflecting general satisfaction with fourth-quarter earnings reports and positive U.S. manufacturing data on Thursday. The Dow faltered somewhat this week, down 0.3% but strong earnings reports have left the index up 2.57% for the month while the TSX has jumped 3.73% so far in February.