TSX ekes out gain as oil price jumps
• The Toronto stock market closed slightly higher at the end of a volatile session as worries about the prospect of a U.S.-led military strike on Syria inflicted losses on most sectors.
The S&P/TSX composite index closed up 16.01 points at 12,607.22 on Wednesday as gold and base metal stocks lost early gains amid falling metal prices.
The market found support from energy companies as investor jitters sent crude oil to its highest level in more than two years and record earnings from National Bank of Canada.
“I don’t think the international community is worried about Syria in itself — they’re worried about the fallout in the area if things were to escalate further,” said Gareth Watson, vice-president investment management and research at Richardson GMP.
National Bank, Canada’s sixth-biggest bank, earned $419-million, or $2.39 a diluted share, up from $353-million ($1.98) in the same 2012 period. Revenue rose 5% to $1.29-billion. Ex-items, net income was a record $391-million ($2.22), 16¢ higher than analysts expected and its shares rose $1.89 to $81.14.
The Canadian dollar was lower as investors avoided riskier assets such as commodity based currencies and equities, falling US0.10¢ to US95.37¢.
U.S. markets fared better amid data showing the recovery in the U.S. housing sector remains on track despite higher mortgage rates.
The National Association of Realtors said its latest seasonally adjusted index for pending home sales declined 1.3% to 109.5. That compared with a reading in May of 111.3, the highest since December 2006.
The Dow Jones industrial average was ahead 48.38 points to 14,824.51, Nasdaq climbed 14.83 points to 3,593.35 and the S&P 500 index rose 4.48 points to 1,634.96.
Concerns about an attack grew after the UN’s special envoy to Syria said evidence suggests that some kind of chemical “substance” was used in Syria that may have killed more than 1,000 people. But Lakhdar Brahimi added that any military strike in response must first gain UN Security Council approval.
The comments came as a UN inspection team was investigating an alleged poison gas attack near Damascus on Aug. 21.
The energy sector led advancers, up 1.5% as oil ran up to its highest level in more than two years on worries over supply disruptions despite data showing an unexpected climb in oil inventories last week.
“When you add it all up — the problems in Libya, Egypt, Syria — you’re looking at three million barrels a day in potential production outages,” said Nick Koutsoftas, a commodities-focused portfolio manager at Cohen & Steers in New York.
The October contract on the New York Mercantile Exchange closed up US$1.05 to US$110.05 a barrel, its highest close since May 2011. Gold closed down US$1.60 at US$1,419.00
The industrials sector was positive and technology stocks were also supportive. The metals and mining sector was down 0.6% while the September copper contract was down US3¢ to US$3.30 a pound.