Canada's main stock market, the Toronto Stock Exchange, closed
up nearly 50 points, but around 20 points below early highs
Tuesday, buoyed by buying in Healthcare and Industrial stocks but
with gains capped on selling of Metals & Mining issues.
Although the Energy sector closed up, recent data showing weaker
than expected April industrial output and retail sales in China has
again cast a cloud over the economic recovery in that country -
which, in turn, has again damped hopes for increased demand for
Canadian commodities. Gold and oil futures were down.
Among Healthcare stocks, Extendicare (EXE.TO) was up 3.5% as
traders and investors continue to digest the details from last week
of its plan to split its U.S. and Canadian businesses into separate
companies, its first quarter results and some senior management
changes. Pharmacy benefits manager Catamaran Corp (CCT.TO, CTRX)
was also up 3.5% while drug-maker Valeant Pharmaceuticals
International Inc (VRX.TO, VRX) gained 2% and hit new 52 week
Industrial stocks posted strong gains, largely due to a 4.5%
rise and new 52 week high for Canadian Pacific Railway Ltd (CP.TO,
CP) and a 1.5% move higher for rival Canadian National Railway Co
Gold futures finished lower for the fourth straight session as a
climbing greenback and a rally in U.S. equities dampened the
metal's appeal. June gold finished down 0.7% at US$1,424.50 an
ounce on the Comex, its lowest settlement since April 24th.
Oil closed with a 1% loss at US$94.21 a barrel. Crude-oil
futures were under pressure after the International Energy Agency
said the oil market is undergoing a positive supply shock due to
skyrocketing production in North America. The IEA expects non-OPEC
production will rise by 1.1 million barrels a day, reducing the
amount of oil needed from OPEC to meet demand.