August 14, 2015 / 3:45 PM / 2 years ago

CANADA STOCKS-TSX steady after volatile week; banks offset resource losses

(Adds analyst comments, market details, updates prices)

* TSX up 12.58 points, or 0.09 percent, at 14,250.98

* Six of the TSX’s 10 main groups were up

By Solarina Ho

TORONTO, Aug 14 (Reuters) - Canada’s main stock index was steady on Friday, as investors took a pause following a volatile trading week in which energy and mining stocks were severely battered.

The index reversed some of Friday’s advances, however, as energy stocks retreated from earlier gains. U.S. crude prices, already flirting with 6-1/2 year lows, gave back nearly all of their session gains to trade just above $42 a barrel.

Cenovus Energy Inc was among the biggest drags on the TSX, falling 1.4 percent to C$17.95, while Penn West Petroleum Ltd plunged 9.2 percent to C$1.18. Oil and gas stocks as a whole retreated 0.2 percent.

Another big index drag was Bombardier Inc. The plane and train maker was downgraded by Fitch on Thursday, adding further pressure to the already-struggling company which has faced an uphill battle winning over the industry with its CSeries jetliner. Shares sank 5.5 percent to C$1.38, its lowest level since 1993.

At 11:19 a.m. EDT (1519 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 11.9 points, or 0.08 percent, at 14,250.3.

Of the index’s 10 main groups, six were in positive territory. Declining issues outnumbered advancing ones by a 1.12-to-1 ratio. The index was posting three new 52-week highs and 17 new lows.

“Calm is good. Despite the volatility this week, I‘m kind of impressed by how well the Canadian market has held together,” said Julie Brough, vice president at Morgan Meighen & Associates, noting that most other stocks outside of natural resources were more stable despite the overall rout.

“The overall picture is that it’s felt uglier than it actually has been unless you were overexposed to the resource side.”

A slew of positive economic data from the United States in recent days also helped sooth markets rattled by China’s devaluation of the yuan at the start of the week.

The hefty financials group climbed 0.4 percent, helped by Royal Bank of Canada’s 0.5 percent gain to C$75.75. Bank of Montreal rose 0.7 percent to C$72.70.

Other energy names including Enbridge Inc also offset some of the losses. Enbridge was up 1.4 percent at C$55.76.

Reporting by Solarina Ho; Editing by Matthew Lewis

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below