TSX steady as resource-share dip offsets U.S. jobs data

Thu Jul 3, 2014 4:52pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By John Tilak

TORONTO (Reuters) - Canada's main stock index was little changed on Thursday as optimism spurred by a bullish U.S. jobs report was balanced by declines in natural resource shares on lower commodity prices.

Government figures showed a jump in U.S. employment growth in June and a drop in the unemployment rate, suggesting the world’s biggest economy was on its way to overcoming a winter slowdown.

“The U.S. employment situation is very strong. It’s very encouraging," said Marcus Xu, portfolio manager at MY Capital Management Corp in Vancouver. “It's a lively economic environment in the United States at the moment."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 2.68 points, or 0.02 percent, at 15,207.11. It rose as high as 15,256.36, a record, earlier in the session.

The TSX is likely to have a strong second half, Xu said. “Commodities are making a bit of a comeback.”

Six of the 10 main sectors on the index were in the red on Thursday.

Financials, the index's most heavily weighted sector, climbed 0.3 percent. Royal Bank of Canada (RY.TO: Quote) added 0.1 percent to C$77.11, and Bank of Nova Scotia (BNS.TO: Quote) gained 0.5 percent to C$71.66.

The energy sector was down 0.2 percent on lower oil prices, with Suncor Energy Inc (SU.TO: Quote) falling 0.9 percent to C$45.53 and Encana Corp (ECA.TO: Quote) shedding 1.1 percent to C$24.58.   Continued...

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.   REUTERS/Mark Blinch