Canada Stocks Continue To Build Upward Momentum


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Canadian stocks rose for the fourth time in five days, buoyed by positive signs for the domestic economy with July building permits soaring nearly 21% month over month to a new cycle high.

Strong China export data also boosted sentiment as it raises the prospect that nation may soon be in a financial position to start increasing its demand for commodities from resources-rich countries like Canada.

Capping gains, Gabriel Resources Ltd. (GBU.TO) was down 53% at 68 cents after earlier hitting a record low of 41 cents. Around 12.5 million shares were traded, making it easily the most active on the TSX. The company said it noted media statements in Romania this morning reporting comments by the Prime Minister and other ministers of the Romanian Government that the draft legislation relating to the Rosia Montana Project is to be rejected before debate by the two chambers of parliament.

It said: "Notwithstanding that the Government approved the draft legislation in its meeting on August 27, and recent polls illustrate a majority of support for progression of the Project across Romania it appears that the Government has instituted emergency procedures to halt any debate in Parliament.

"Gabriel is urgently seeking confirmation of the actual statements made and clarification of the impact on the proposed permitting of the Project. If the draft legislation is rejected then the company will assess all possible actions open to it, including the formal notification of its intentions to commence litigation for multiple breaches of international investment treaties.

"As matters progress the company will update the market accordingly, however until such further announcement the company would advise caution in the trading of its shares."

Among other individual stocks, fertilizer producer Potash Corp (POT.TO) gained near 5% on speculation that Russia will not initiate a price war, as was feared in recent weeks after the break up of a Belarus consortium.

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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