Canada Stocks Close Higher; Economic Data Fuels Rally; Oil Boosts Energy Stocks

By Staff,

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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 54.4.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
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