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Canada Stocks Close Down 7 Pts; Stories of The Day Relate To Gold Stocks, TransCanada and Telus
By: MT Newswires
The Toronto Stock Exchange closed down near seven points - but with some modest upward momentum - on Monday, in quiet Easter holiday trade. Losses reflected lower gold prices and selling of energy stocks like TransCanada (TRP.TO, TRP). In the case of TransCanada, the selling came amid news that a decision on whether it can go ahead with its Keystone pipeline will be delayed until later this year, at the earliest. TRP was down 3.7% on the TSX.
Gold prices fell to near three week lows in thin trade as Reuters cited sharp outflows from the world's biggest bullion-backed exchange-traded fund ( ETF ) and less safe haven buying as there was no apparent big escalation in tensions in the Ukraine. In addition, Bloomberg reported hedge funds lowered bullish bets on gold for a fourth week, the longest streak this year.
Stories of the day related to gold stocks, particularly Goldcorp versus both Yamana and Agnico Eagle in the race for a tie up with Osisko Mining. There was also the fallout from the weekend news about Barrick Gold Corp. (ABX.TO, ABX) and Newmont Mining Corp. ( NEM ) in merger talks. Outside of the gold space, focus was on telco giant Telus Corp (T.TO) which is making its third bid at winning control of smaller, troubled rival Mobilicity for $350 million.
Goldcorp (G.TO, GG) said Monday it will not amend its near $3.6 billion hostile offer for Osisko Mining (OSK.TO). Its existing offer expires at 11.59 pm tomorrow. This leaves the door ajar for a deal involving both Yamana Gold (YRI.TO) and Agnico Eagle (AEM.TO) to go ahead. Their deal values Osisko at about $3.9 billion. However, the Goldcorp transaction is not as complicated as the one involving the other three.