(MENAFN- ProactiveInvestors) Canadian shares fluctuated as gains among energy and material producers following a rally in commodity prices helped offset negative sentiment following unexpected contraction in economic growth.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) was up 0.2 percent at 14660.57 at 12:16 p.m. in Toronto. Almost two shares advanced for every stock that declined as seven out of 10 share groups gained.
The world’s 11th largest economy shrank 0.2 percent in November as manufacturing dropped the most since January 2009 and on declines in mining and oil and gas extraction. The median forecast in a Bloomberg survey of economists was for output to be little changed.
The materials sub-index which includes mining shares rose 2.1 percent as gold rebounded. (TSE:G) Canada’s largest gold miner by market value picked up 3.5 percent to C$30.51. (TSE:ABX) the second-largest rallied 4.2 percent to C$16.14.
U.S. gold futures for February delivery were up $4.70 an ounce at $1260.60 at 9:57 a.m. while spot gold was up 0.3 percent at $1260.40 an ounce.
The energy sector the main index's second most heavily weighted group increased 1.6 percent as oil Canada’s largest export jumped today paring its monthly decline.
() owner of the largest stake in closely held Syncrude Canada jumped 12 percent to C$7.28. The Calgary-based company said it would further slash its dividend and capital spending budget in response to the sharp drop in oil prices and a rising debt load.
TransCanada (TSE:TRP) the country’s second-biggest pipeline operator fluctuated between gains and losses. The U.S. Senate passed legislation approving the Calgary-based company’s Keystone XL pipeline moving the Republican-controlled Congress a step closer to a showdown with President Barack Obama over the long-stalled project.
Energy (TSE:SU) Canada's largest oil sands producer added 1.5 percent to C$36.96. Limited () Canada’s largest independent energy company rose 2.4 percent to C$35.80.
West Texas Intermediate for March delivery rose 1.7 percent to $45.29 a barrel as of 10:04 a.m. Brent for March settlement added 0.6 percent to $49.42 a barrel.
Financials the index's most heavily weighted sector slipped 1.8 percent. () which has the heaviest weighting in the index tumbled 2.5 percent to C$72.28. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value skidded 1.4 percent to C$50.90.
() a specialty pharmaceutical company slumped 42 percent to C$5.25 after unveiling results of a Phase 2 clinical trial conducted in Germany to compared safety and efficacy of its WF10 therapy for the treatment of allergic rhinitis.
The junior () edged up 0.1 percent to 668.16 at 12:29 p.m. in Toronto.
In currency the Canadian dollar reached the weakest level in almost six years after the report that showed the economy unexpectedly shrank in November bolstering bets the central bank will cut interest rates again. The loonie depreciated 1.2 percent to C$1.2772 per U.S. dollar at 10:05 a.m. in Toronto. It touched C$1.2799 the weakest since March 2009. One loonie buys 78.30 U.S. cents.
In the U.S. market shares dropped amid concern over economies in Europe and Russia as data showed slower growth in America. The S&P 500 (INDEXSP:.INX) slipped 0.8 percent to 2004 at 11:47 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.8 percent to 17274.The tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) retreated 0.4 percent to 4665. Most followed shares included Wholesale Altria and Biogen.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.