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Canada Stocks Drop For A Third Straight Day On Weaker Gold Prices; CIBC, PrairieSky Royalty In The News

By: MT Newswires
Posted: 5/29/2014 4:10:00 PM
Referenced Stocks:

The resources heavy Toronto Stock Exchange dropped for a third straight day Thursday, each time on weaker gold prices . But while it lost 22 points today, it could have been worse - the index was down around 80 points after about an hour of trading.

Among sectors, all but Info Tech (+0.79%), Health Care (+0.75%) and Energy (+0.15%) were higher late in the day.

Of commodities, gold futures fell for a fourth consecutive day and hit 3.5 month lows Thursday following the release of U.S. data showing unemployment benefits fell much more than expected in the week ended May 24 and pending home sales for the second straight month in April. But Q1 gross domestic product did decline.

Bloomberg reported that West Texas Intermediate crude rose after stockpiles at Cushing, Oklahoma, the delivery point for the contract, fell for the 16th time in 17 weeks. It said brent oil in London has climbed this month on concern that violence in Ukraine will lead to a disruption of shipments of oil and gas from Russia.

In news, CIBC lost around 1.4% from near 52 week highs. Early Thursday the bank said after adjustments, Q2 net income was C$887 million or C$2.17 per diluted share, beating the Capital IQ consensus of C$2.01, as earnings in the bank's wealth management segment increase 29% year-over-year. Revenue totaled C$3.2 billion, up slightly from last year's C$3.1 billion, matching the Street view. Additionally, it declared a dividend of $1 per share, up from the previous payout of $0.98. The dividend will be paid on July 28 to shareholders of record at the close of business on June 27.

PrairieSky Royalty Ltd. (PSK.TO) surged 30% and saw more than 20 million shares change hands - more than twice that traded in the next most active - on its trading debut after the largest initial public offering in this country for 14 years. Energy producer Encana Corp. (ECA.TO) raised C$1.46 billion from the sale of its former unit and may receive a total of C$1.67 billion if the underwriters exercise options.