Gold miners help TSX eke out gain, energy stocks weigh

Wed Jul 13, 2016 4:59pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index made a small gain on Wednesday as gold miners advanced on a bullion price recovery while energy stocks weighed with a fall in oil prices as U.S. inventory data renewed concerns over a global glut.

"Energy's got a little more pressure on it given declines in WTI (West Texas Intermediate) and concerns over the storage levels, however gold has found a bid to put the TSX in the black today," said Chris King, vice president and portfolio manager at Morgan Meighen & Associates.

The Toronto Stock Exchange's S&P/TSX composite index ended up 16.13 points, or 0.11 percent, to 14,493.80. That added to Tuesday's close, the highest since August. Six of the index's 10 main groups ended in positive territory.

Gold recovered from its lowest in nearly two weeks, as prospects for further economic stimulus helped to bolster investor appetite. [GOL/]

The most influential gainers on the index included Agnico Eagle Mining, up 4 percent to C$73.73, and Barrick Gold Corp, which advanced 1.8 percent to C$27.36.

The materials group, which includes precious and base metals miners and fertilizer companies, added 1.7 percent. Potash Corp gained 4 percent to C$21.90.

The Bank of Canada cut its growth forecast for 2016 but held rates steady on Wednesday, saying it believed exports and business investment would pick up even though it may have underestimated structural challenges facing businesses.

The heavyweight energy group fell 1.4 percent, as oil tumbled more than 4 percent to erase most of the previous session's gain, with a raft of bearish U.S. inventory data heightening concerns about a global glut. [O/R]   Continued...

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