Canadian stocks closed 107 points higher on Thursday after
opening more than 100 points up and trading in a pretty thin range
thereafter. Most sectors where higher led by Healthcare and Energy,
but Utilities bucked the trend.
In a strange day relating to results, Barrick Gold (ABX.TO)
gained almost 3% although it booked a massive writedown. Potash
Corp (POT.TO) also helped the overall market in recovering some of
its losses of earlier this week.
Stocks were buoyed by strong manufacturing data released in the
U.S., Canada's largest trading partner. The Institute of Supply
Management released their PMI report showing that the index climbed
to 55.4 in July from a reading of 50.9 in June. Analysts had
expected the ISM index to rise to 52.0 last month. The New Orders
Index registered 58.3 in July, while the Employment Index rose to
Oil prices surged on the back of the PMI data, driving the
Energy sector higher, with the September NYMEX futures contract
settling up $2.86 to close at $107.89. Gold ended slightly lower
today, closing with a $1.80 loss to finish at $1,311.20 per ounce.
The reason for the lower close was the bullish ISM data, which
resulted in a strong greenback, which decreased gold's
attractiveness by holder's of international currencies.
Energy Fuels Inc. (EFR.TO) was the most active stock with no
fresh news driving volume. Last week the company announced that
Korea Electric Power Corporation (KEPCO) has signed two support
agreements for Energy Fuels' proposed acquisition of Strathmore
Minerals Corp. (STM.TO) The stock settled higher by 16.5% with 11
million shares changing hands.