TSX Little Changed; RIM Jumps - Canadian Commentary - InvestingChannel

TSX Little Changed; RIM Jumps – Canadian Commentary

Toronto stocks were little changed Monday morning as traders turned cautious ahead of a slew of corporate earnings reports from the U.S., Canada’s largest trading partner. Also, weak industrial output data from the euro zone weighed on trader sentiment, even as they digest reports that the China planning to increase 10 times the current level of investment limits for foreign investors to encourage share buying.

The S&P/TSX Composite Index edged up 15.90 points or 0.13 percent to 12,618.08, after adding just over 100 points or about 1 percent in the past four straight sessions.

The price of gold was moving higher Monday morning with the euro advancing to a fresh 8-month high against the US dollar. Gold for February gained $7.10 to $1,667.70 an ounce.

Among gold plays, Aurizon Mines (ARZ.TO) surged 33 percent to C$4.550 after Alamos Gold (AGI.TO) said it has commenced an offer to acquire Aurizon Mines for about C$780 million in cash and shares. On the other hand, Alamos Gold Inc. (AGI.TO) dived nearly 10 percent.

Agnico-Eagle Mines (AEM.TO). Allied Nevada Gold (ANV.TO) and Goldcorp. (G.TO) were up around 1 percent each.

The price of crude oil was trading flat Monday morning amid a generally weak US dollar. Crude for February eased $0.38 to $93.18 a barrel.

Oil and gas company Encana Corp. (ECA.TO) announced that Randall Eresman, President & Chief Executive Officer has retired from the company on Friday. The stock slipped 0.15 percent.

Diamond firm Harry Winston Diamond (HW.TO) gained 7 percent after it said it agreed to sell its luxury brand diamond jewelry and timepiece division, Harry Winston Inc., to Swiss watch maker Swatch Group Ltd. for about $750 million.

Smartphone maker Research In Motion (RIM.TO) was up over 5 percent ahead of the launch of its BlackBerry 10 devises.

Metals and mining company Uranium One (UUU.TO) surged 15 percent after it said it would be taken private following a plan of arrangement with JSC Atomredmetzoloto and its affiliate, Effective Energy N.V. for cash consideration of C$2.86 per share.

Retained executive search firm The Caldwell Partners International Inc. (CWL.TO) added just over 1 percent after reporting that its first quarter net loss was C$56,000 compared to a loss of C$444,000 in the comparable period a year earlier.

On the losers’ side, life sciences company DiagnoCure Inc. (CUR.TO) lost about 12 percent even after reporting a fourth-quarter net loss of C$1.9 million or C$0.05 per share, narrower than C$2.3 million or C$0.06 per share in the same period last year.

Base-metals miner Inmet Mining Corp. (IMN.TO), which is the target of a hostile C$5.1 billion bid from Canadian miner First Quantum Minerals (FM.TO) said Saturday that the letter sent a day earlier by First Quantum to David Beatty, chairman of the Inmet board of directors, was “hostile and counterproductive”. Inmet Mining (IMN.TO) surrendered over 1 percent and First Quantum Minerals (FM.TO) eased 0.40 percent.

In economic news, the euro zone industrial production slipped unexpectedly by 0.3 percent in November from a month ago, when it was down 1 percent, Eurostat said. Economists had forecast output to grow 0.2 percent. On a yearly basis, industrial output decreased 3.7 percent, which was larger than the 3.3 percent decline logged in October.

by RTT Staff Writer

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