Canadian Stocks Close Higher; All Sectors Climb; Mirabela Nickel Most Active; Caps Gains With Loses
Canadian stocks closed 60 points higher on Tuesday, as investors shrugged off news that the U.S. government has shut down non-essential operations. All sectors were higher bar the Metals & Mining, but led by Healthcare. All told, strong U.S. manufacturing data provided a boost to sentiment.
However, the Bank of Canada cut its third-quarter economic growth forecast sharply on Tuesday and said the crucial export sector might recover more slowly than expected, making clear interest rates will remain low until the outlook improves. This doesn't make Canada any more attractive for investment.
Metals and Mining stocks were dragged lower by a sharp decline in gold prices. December COMEX gold dropped $36.4 per ounce to settle at $1,290.60.
Mirabela Nickel Ltd. (MNB.TO) was the most active share on the TSX. The company advised last week that it had received notification from one of its two customers, Votorantim Metais Niquel S.A., that Votorantim intends to close their smelting facilities from November 2013 due to the adverse nickel market conditions. Votorantim considers that the concentrate sales agreement with Mirabela will terminate at the end of November 2013. The stock closed down 1 cent to a year low with 13 million shares changing hands.