TSX Takes 3 Day Gains To 200 Pts, But Closes Wednesday With Downward Momentum; Prompting A Question: Is Its Run Up Over?
Canada's main stock market, the Toronto Stock Exchange, closed up 50 points but around 20 points down from session highs and with some downward momentum amid signs of profit taking late Wednesday, the index having risen more than 200 points and having hit its highest intraday highs of 2013 this week. This follows recent selling pressure that saw the TSX lose all of its gains for this year.
Gains were capped by selling in gold stocks on lower bullion prices. The three most active stocks were gold related - Kinross (K.TO), Barrick (ABX.TO) and Yamana Gold (YRI.TO). Barrick fell nearly 9% and hit year lows after a Chilean court ordered work halted at its Pascua- Lama project in the Andes. Not helping sentiment for the metal, Goldman Sachs cut forecasts through 2014.
The most active gainer was Bombardier (BBD-B.TO), although it closed up just 1 cent at $4.09 and off a day high $4.14 amid news that Porter Airlines has signed a conditional purchase order for 12 Bombardier CS100 aircraft, with options for an additional 18 CS100 aircraft. The agreement also includes purchase rights for six Q400 NextGen aircraft. Delivery of Porter's first CS100 aircraft would be in 2016.
On oil, MarketWatch reported: "Oil futures finished higher for a third day in a row on Wednesday." It said: "Data from the Energy Information Administration showed a climb in last week's crude supplies that was less than expected, but gasoline stockpiles unexpectedly rose. The Organization of the Petroleum Exporting Countries also cut its oil-demand forecast." It added: "May crude tacked on 44 cents, or 0.5%, to settle at US$94.64 a barrel on the New York Mercantile Exchange. It had seesawed between gains and losses during the session."
On gold, MarketWatch reported: "Strength in the dollar and a rally in U.S. equities combined with a bearish gold outlook from Goldman Sachs to push futures prices for gold down by nearly US$28 an ounce on Wednesday. The decline came just a day after prices marked their highest closing level since April 1." It said: "June gold sank $27.90, or 1.8%, to settle at $1,558.80 an ounce on the Comex division of the New York Mercantile Exchange. That was the biggest one-day dollar and percentage loss since November, according to FactSet data."
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