TSX at highest level in close To a month
TORONTO • The Toronto stock market closed at its highest level in nearly a month on Friday as concerns over oil supplies pushed up shares of Canadian energy companies.
The S&P/TSX composite index lifted 32.40 points to 12,736.92 —an increase of about 1.6% since last week and its highest close since July 23.
The Canadian dollar dropped 0.33 of a cent to US96.72¢ after Statistics Canada reported Friday that manufacturing sales fell in June for the fourth time in the last six months, dropping 0.5% to $48.2 billion.
The TSX energy sector was up 0.8% as the September crude contract rose 13¢ to US$107.06 a barrel as unrest in Egypt kept traders cautious over how the political situation there might affect supply through the region.
Though not an oil exporter, Egypt controls the Suez canal that links the Mediterranean Sea and the Red Sea, giving it a crucial role in maintaining global energy supplies.
Talisman Energy shares were up 1.9% to C$11.30, while Suncor Energy rose 1% to $35.33.
Gold stocks fell while December gold bullion rose $10.10 to US$1,371.70 an ounce, closing at its highest level since June 19. September copper gained 2.6¢ to US$3.36 a pound.
Financial stocks also traded heavily, rising 0.1% just over a week before Canada’s biggest banks report their quarterly results. Royal Bank shares rose 50¢ to $64.36.
In the U.S., the Commerce Department reported that builders began work last month on houses and apartments at a faster pace.
The seasonally adjusted annual rate of starts was up 6% to 896,000.
On Wall Street, the Dow continued its decline, logging the worst two-day session since June, dropping 30.72 points to 15,081.47, the Nasdaq slid 3.34 points to 3,602.78 and the S&P 500 pulled back 5.49 points to 1,655.83.
Retailers in the United States continue to be pressured, with department store Nordstrom cutting its profit outlook for the year late Thursday. The company’s restraint added to bleak outlooks from Wal-Mart and Macy’s earlier this week, which have raised doubts that shoppers will spend enough to give the tepid U.S. economy a boost.
Traders have also been focusing on how the U.S. economy will influence timing for the U.S. Federal Reserve’s winding down of its massive bond-buying program. Many expect the Fed will make its first move next month, though the exact timing is still uncertain.
The $ 85- billion- a- month monetary stimulus has been seen by many as one of the reasons that Wall Street has touched new highs in recent months.
In other corporate developments, BlackBerry shares gained 3.9%, or 44¢, to $10.86.
Chief executive Thorsten Heins stands to make as much as US$55.6 million if the company is sold and he is ousted from the top job, according to securities filings.