TSX Shows Strong Upward Momentum After Midday To Close Up 45 Pts


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Canada's main stock market, the Toronto Stock Exchange, showed strong upward momentum over the second half of the day - it was down around 20 points at midday - and closed up 45 points at session highs Friday at the end of a week that saw the release of some particularly strong earnings and operations updates from the likes of Bombardier (BBD-B.TO).

But lower commodity prices and less exciting news from the likes of Surge Energy Inc (SGY.TO) helped cap gains.

June gold futures fell Friday to settle at US$1,436.60 an ounce on the Comex division of the New York Mercantile Exchange, down 1.9% on the week. July silver settled at $23.658 an ounce, down 1.5% on the week. Brent oil for June settlement eased 0.5% to $103.91 a barrel.

Surge fell close to 3% with nearly 20 million shares traded after it reported a first quarter 2013 net loss of $1.4 million, or $0.02 per share, on revenues of $53.6 million. Funds from operations totaled $25.2 million, or $0.35 per diluted share. In the same period last year, the company reported a net income of $2.7 million, or $0.04 per share, on revenues of $51.1 million. Funds from operations totaled $24 million, or $0.33 per share.

This week, it also announced management changes, a private placement and the sale of non-core assets.

But boosting the market was Bombardier, up more than 5% with 14 million shares traded, on continued positive sentiment for the company after its result and CSeries update.

Credit Suisse said: "Q1 represented a solid operating performance, with higher-than-expected Aerospace revenues combining with better Transportation margins to yield an EPS of $0.08, which would have beaten consensus by a penny were it not for a tax headwind. While the quarter no doubt contributed to yesterday's strong share outperformance, we think the more incremental positive from yesterday's release was the affirmation of June's target for CSeries first flight. We reiterate our Outperform rating and raise our TP to $5.00 (from $4.75) ahead of the positive near-term catalysts of the first flight and the Paris Air Show, which could attract additional orders for the CSeries. Looking beyond first flight, management said that it remains confident on its "realistic" 12-month flight test schedule for the aircraft. Our 2013 EPS rises to $0.40 from $0.39 on higher Transport margin."

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

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This article appears in: Investing , Commodities

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