Friday, 10 July 2015 00:44
TORONTO: Canada’s main stock index regained some ground on Thursday after Wednesday’s bruising retreat, but it was off session highs as energy and mining stocks gave up early gains, undermining stronger financial stocks.
A sharp drop in oil prices and risk aversion sparked by an equities selloff in China had sent the TSX down nearly 1.5 percent on Wednesday, but moves by Beijing to stem the country’s stocks rout helped calm markets on Thursday.
“It’s the proverbial dead-cat bounce. After days of worries, the market’s in a relief rally on the heels of New York and hopes that we get a respite on everything from China to Greece,” said John Ing, president of Maison Placements Canada.
“But those issues still fester…We’re in uncharted waters as far as the Greece exit, and the (Chinese) market collapse is only 30 percent after a 150 percent gain.”
Helping to keep the Toronto stock market’s benchmark index in positive territory were Royal Bank of Canada, which rose 0.94 percent to C$ 76.31, and Manulife Financial Corp , which advanced 0.9 percent to C$ 22.90.
The overall financials group climbed 0.6 percent.
At 10:53 a.m. EDT (1453 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 42.89 points, or 0.3 percent, at 14,454.96. Of the index’s 10 main groups, seven were higher.
Gains were limited by energy and mining stocks, which both slid 0.2 percent.
The most dramatic decliner on the index was Pacific Rubiales Energy Co, which plunged 39.1 percent to C$ 3.20 after Mexican industrial conglomerate Alfa SAB de CV and energy investment firm Harbour Energy Ltd dropped their plans to buy the Canadian oil and gas company.
Pacific Rubiales’ shares have tumbled 75 percent over the past year on sinking crude prices and a heavy debt load.
Advancing issues outnumbered declining ones on the TSX for a 1.06-to-1 ratio on the upside. The index was posting one new 52-week high and eight new lows.
