Markets

Canada Stocks End Session 50 Points Lower; Whitecap Resources Easily Most Active, Drops on Invicta Energy Buy

After recovering most of its early losses and then trading within a pretty thin range - albeit still in negative territory - for most of the next five hours, Canada's main stock market, the Toronto Stock Exchange, finally succumbed to strong selling pressure inside the last hour and ended the day down nearly 50 points, having gone close to repeating session lows.

Easily most active and certainly a weight on the overall index, Whitecap Resources Inc. (WCP.TO) fell 3.5% from near year highs with around 45 million shares traded after the company announced an agreement to acquire all the issued and outstanding common shares of Invicta Energy (VCA.V). The total transaction value is approximately $60.2 million, including the assumption of net debt. Invicta shareholders will receive, at their election, for each Invicta share held, either: (i) 0.05891 of a Whitecap common share; or (ii) $0.51911 in cash, subject to an aggregate cash maximum of $10.7 million.

MarketWatch reported: "Oil futures scored a gain Monday, enough to mark their highest settlement since Feb. 20." It said: "The initial shock in the financial markets over the proposed bailout plan for Cyprus eased a bit, prompting oil prices to turn decidedly higher toward the end of the trading session. April crude tacked on 29 cents, or 0.3%, to settle at $93.74 a barrel on the New York Mercantile Exchange."

MarketWatch also reported: "Gold futures rose Monday, settling above $1,600 an ounce for the first time since late February." It said: "A proposed tax on Cyprus bank deposits as part of a bailout plan renewed worries about the euro zone and investors took refuge in the precious metal. April gold added $12, or 0.8%, to settle at $1,604.60 an ounce on the Comex division of the New York Mercantile Exchange, its highest close since Feb. 26, according to FactSet data."

Meanwhile, Reuters reported: "HSBC cut its gold forecast for this year and next on Monday after the metal's weak start to the year, but said ultra-loose monetary policy in the United States and elsewhere meant it remains positive on prices overall."

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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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