Canadian Stocks Close Higher, But Lose Half Early Gains On Syria Concerns; Telecom Stocks, Resverlogix Lead The Way


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Canadian stocks climbed 86 points today, but lost half of their earlier gains having been up 170 points at five month highs at the open - testing resistance levels with telecom stocks leading the way. News that Verizon Communications Inc ( VZ ) is probably not entering the Canada market after all generated tailwinds for telecom shares.

The Telecom sector gained more than 4%. Among individual stocks, BCE (BCE.TO) was up near 4%, while both Rogers (RCI-B.TO) and Telus (T.TO) were up around 7%.

Quebecor (QBR-B.TO) was up more than 3%.

But news that Congress may back U.S. President Obama in a military strike on Syria cast a cloud over sentiment over much of the day.

In economic news, the RBC Canadian Manufacturing Purchasing Managers' index, a gauge of manufacturing business conditions, edged up to 52.1 in August from 52.0 in July.

Right at the open Canadian stocks passed through resistance levels at the recent August highs near 12,812. A close above this level would likely have seen the index go on to test the May intra-day highs near 12,889. Support is seen at the 10-day moving average near 12,673.

The trend in the TSX is higher which is reflected by the 50-day moving average crossing above the 200-day moving average which is known in the industry as a "Golden Cross'.

Momentum is pointing to higher prices on the TSX with the MACD (moving average convergence divergence index) printing in positive territory with an upward trajectory. The MACD is a momentum indicator that measures the difference between two moving averages and compares that difference to a moving average of the difference to determine the rate of change of prices.

Resverlogix Corp. (RVX.TO) was easily the most active stock up 40% at 95 cents but well off a day high $1.16 with 7.7 million shares changing hands. The company this morning announced the Full Analysis Set ( FAS ) data from 281 treated patients in its Phase 2b ASSURE clinical trial evaluating RVX-208 using intravascular ultrasound (IVUS) in high-risk cardiovascular patients.

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
More Headlines for: FAS , VZ

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