TSX Closes Marginally Higher, Gains 0.4% For Week

(RTTNews.com) - Toronto stocks were back in positive territory on Friday amid renewed hopes of a satisfactory resolution to Greece's talks with private creditors on a partial write-off of its sovereign debt. Nonetheless, disappointing economic data from the U.S. limited the upside.

Toronto's main index closed Friday at 12,466.50, up 2.18 points or 0.02 percent. The S&P/TSX Composite Index touched an intraday high of 12,528.99 and a low of 12,443.99.

The S&P/TSX Composite Index gained 0.41 percent for the week.

The TSX Venture closed at 1,628.92, up 14.15 points or 0.88 percent. The index opened at 1,620.17 compared to its previous close of 1,614.77.

The major gainers on the S&P/TSX Composite Index were technology and materials stocks. Amongst the prominent decliners were mining and financial stocks.

Light Sweet Crude Oil futures for March delivery dipped $0.14 or 0.1 percent to settle at $99.56 a barrel on the New York Mercantile Exchange on Friday.

The Energy Index gained 0.06 percent, as Suncor Energy Inc. (SU.TO) gained 0.81 percent and Talisman Energy Inc. (TLM.TO) rose 0.59 percent. Meanwhile, Petrobakken Energy (PBN.TO) lost 4.80 percent.

The Diversified Metals and Mining Index fell 0.35 percent, with First Quantum Minerals (FM.TO) down 2.82 percent Copper Mountain Mining Corporation (CUM.TO) down 13.65 percent.

The Financial Index dropped 0.60 percent, led by Manulife Financial Corp. (MFC.TO), Scotiabank (BNS.TO) and TD Bank (TD.TO).

CIBC (CM.TO) eased 0.27 percent after reporting fiscal 2011 net income of C$2.87 billion, or C$6.71 per share under IRFS standard. Adjusted earnings were restated as C$7.57 per share.

National Bank (NA.TO) surrendered 0.24 percent after reporting fiscal 2011 net income of C$1.22 billion, or C$6.92 per share, under IFRS, compared with C$1.21 billion, or C$6.85 per share, under GAAP.

The Information Technology Index gained 1.16 percent, with heavyweight Blackberry maker Research In Motion (RIM.TO) gaining 3.56 percent after some positive news for the troubled company.

Prem Watsa - who has been appointed to the RIM board this week - raised his stake in the company to 5.12 percent from the earlier 2.25 percent to become the fourth-largest shareholder in the the smartphone maker. Watsa, who heads Fairfax Financial Holdings Ltd, is well known for his turnaround capabilities.

Another heavyweight, transport systems maker Bombardier Inc. (BBD.B.TO) shed 2.60 percent.

Gold futures moved higher for a third straight day on Friday, closing at a seven-week high as the dollar continued to weaken. Gold for February delivery, the most actively traded contract, moved up $5.50 or 0.3 percent to close at $1,732.20 an ounce on Friday.

The Global Gold Index gained 1.82 percent, with Kinross Gold Corp. (K.TO) up 2.0 percent and Yamana Gold Inc. (YRI.TO) up 1.64 percent. Eldorado Gold Corp. (ELD.TO) gained 6.25 percent, Barrick Gold (ABX.TO) rose 1.20 percent, and B2Gold Corp. (BTO.TO) gained 3.27 percent. Agnico-Eagle Mines (AEM.TO) gained 3.64 percent.

The Materials Index gained 1.51 percent, with Potash Corporation of Saskatchewan Inc. (POT.TO) gaining 3.50 percent, while Geologix Explorations Inc. (GIX.TO) surged up by 14.81 percent.

Electronics products company Celestica Inc. (CLS.TO) moved up 4.79 percent after reporting fourth quarter IFRS net earnings of $69.2 million or $0.32 per share, up from $38.4 million or $0.17 per share last year. Adjusted net earnings were $71.1 million or $0.33 per share, compared to $61.3 million or $0.27 per share for the same period last year. Analysts were expecting the company to report earnings of $0.25 per share.

For the first quarter, Celestica forecast revenue in a range of $1.6 billion to $1.7 billion and expects adjusted net earnings to be in the range of $0.18 to $0.24 per share. Analysts expect the company to report earnings of $0.23 per share for the quarter.

In economic news, the U.S. Commerce Department said the economy grew 2.8 percent in the final quarter of 2011, up from the 1.8 percent growth posted for the third quarter.

Nonetheless, the growth fell short of the 3.1 percent projected by most economists in what may be a sign that economic recovery is still stagnant.

On the other hand, U.S. consumer sentiment in the month of January improved by even more than previously estimated, according to a revised report released by Reuters and the University of Michigan on Friday.

The U.S. consumer sentiment index for January was upwardly revised to a reading of 75.0 from the mid-month reading of 74.0, coming in well above the final December reading of 69.9. Economists had expected the index to be unrevised.

From the euro zone, German import price inflation eased sharply and for a third consecutive month in December, data from the Federal Statistical Office showed.

Inflation eased to 3.9 percent in December from 6 percent in November and 6.8 percent in October. Economists expected the rate to be 3.8 percent.

Italy successfully issued 11 billion euros worth of treasury bills on Friday, meeting the maximum target. The Treasury sold 8 billion euros worth of 182-day bills at a lower cost. The yields dropped sharply to 1.969 percent from 3.251 percent recorded at a similar auction conducted on December 28.

Meanwhile, Fitch downgraded its rating on the debt of five EU countries: Spain, Belgium, Italy, Cyprus and Slovenia. The ratings agency also affirmed Ireland's rating.

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