Friday, October 31st8.1°C
21625
22916

Resource stocks limit TSX losses, traders seek safety amid Ukraine tensions

TORONTO - The Toronto stock market closed little changed Monday, one of the few global markets to avoid racking up sharp losses in the wake of Russia's invasion of Ukraine's Crimean peninsula.

The S&P/TSX composite index edged 3.15 points higher to 14,212.74 with any TSX losses held in check by energy and gold stocks, which rose alongside oil and bullion prices as traders generally avoided riskier assets such as equities and base metals.

Gains in oil and gold also helped support the Canadian dollar, which was faring better than some other currencies. The loonie declined 0.08 of a cent to 90.22 cents US.

Investors sought the perceived safe haven of U.S. dollars and Treasuries after Russia took effective control of the Crimean peninsula, calling it a necessary protection for citizens living there. There are worries that Russia might seek to expand its control by seizing other parts of eastern Ukraine.

U.S. indexes tumbled as traders weighed the potential economic consequences of Russia's move and the effect of possible sanctions.

"It’s a surprise. I don’t think we’ve had this level of political events impact the markets in some time," said Patrick Blais, managing director and portfolio manager at Manulife Asset Management.

The Dow Jones industrials dropped 153.68 points to 16,168.03, the Nasdaq gave back 30.82 points to 4,277.3 and the S&P 500 index fell 13.72 points to 1,845.73.

European stocks also tumbled with Frankfurt's DAX falling three per cent and the Paris CAC 40 down 2.66 per cent. Russia’s benchmark stock index plunged 12 per cent.

The gold sector led TSX advancers, up about 1.65 per cent as traders seeking safety pushed April bullion up $28.70 to US$1,350.30 an ounce.

"Gold is a sentiment-driven market and the (gold) equities as well," observed Blais.

"And with news of this sort, gold names could have a pretty good run. The backdrop is definitely supportive. With the uncertainty I think they’ll keep moving higher."

The energy sector rose 0.23 per cent with oil prices spiking more than $2 as Russia’s military advance into Ukraine raised fears of economic sanctions against a country that is one of the world’s major energy producers. The April contract in New York jumped $2.33 to US$104.92 a barrel.

Pengrowth Energy Corp. (TSX:PGF) had an $91.1-million net loss, equivalent to 17 cents per share, in the fourth quarter. Analysts had expected a net loss of three cents a share and its stock slipped 45 cents to $7.01.

The TSX was also supported by a strong earnings report from auto parts giant Magna International (TSX:MG). Its quarterly net earnings rose 31 per cent from a year ago to US$458 million or $2.03 a share as sales jumped 14 per cent to US$9.17 billion. The company also raised its quarterly dividend by 19 per cent to 38 cents per share and Magna shares gained $5.18 to $103.75.

The base metals component was down 2.57 per cent as May copper lost two cents to US$3.17 a pound. Prices for the metal were also pressured by Chinese data as both the official and HSBC versions of the country's monthly manufacturing survey showed the sector was weaker last month than in January.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14458.69-68.88
S&P CDNX771.65-9.42
DJIA17195.42221.11
Nasdaq4566.138+16.912
S&P 5001994.65+12.35
CDN Dollar0.8875-0.0059
Gold1166.30-32.2999
Oil80.16-0.74
Lumber322.40-1.20
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.11+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.150.00
Cantex0.045-0.015
Anavex Life Sciences0.1711-0.0089
Metalex Ventures0.0350.00
Russel Metals32.22-0.35
Copper Mountain Mining1.97-0.05
Colorado Resources0.14+0.005
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.375+0.005

 



23015

FEATURED Property
2096451#406 3220 Skyview Lane
2 bedrooms 2 baths
$236,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


23741