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Canadian Stocks Gain Amid Greek Debt Crisis Fears

Strategic Insights

— 1 min read

Canadian stocks continued their upward trend for a third day, led by mining companies, as investors sought safe-haven assets like gold amid concerns over Greece's debt crisis. Key drivers of the market included gold prices, which rose 0.8 percent to $1,148.80 an ounce, and gold mining companies such as Goldcorp Inc. and Barrick Gold Corp. Also contributing to the market's momentum was the country's gold sector, with seven of the world's 20 largest gold producers based in Canada.

Key Takeaways:

  • Goldcorp Inc. gained 1.9 percent after being added to Toronto-Dominion Bank's Action List of top stocks.
  • TransCanada Corp., owner of the country's largest pipeline system, dropped 1.2 percent as crude futures declined.
  • Telecommunications equipment maker Aastra Technologies Ltd. plunged 16 percent after its quarterly profit missed the average earnings estimate by 69 percent, excluding certain items.
  • The Standard & Poor's/TSX Composite Index advanced 21.03 points, or 0.2 percent, to 12,134.56.
  • Gold prices have increased 7.6 percent since Feb. 8, contributing to the gain of the S&P/TSX.
  • Seven of the world's 20 largest gold producers are based in Canada, according to Bloomberg data.
  • The cost of credit-default swaps insuring against Greek government debt surged to a record high, according to CMA DataVision prices.
  • Greece is holding talks with the EU, European Central Bank, and International Monetary Fund on a 45 billion-euro ($60 billion) aid package.
  • Barrick Gold Corp., the world's largest producer, gained 1.2 percent to C$39.49.
  • Goldcorp advanced 1.9 percent to C$39.53 after TD analyst Greg Barnes upgraded the stock due to its low political risk profile, conservative balance sheet, and low-cost production.

Statistics:

  • The S&P/TSX has gained 9.2 percent since Feb. 8.
  • Gold prices have increased 7.6 percent since Feb. 8.
  • The cost of credit-default swaps insuring against Greek government debt surged to a record high.
  • The aid package being discussed by Greece is worth 45 billion-euro ($60 billion).
  • Gold futures rose 0.8 percent to $1,148.80 an ounce.
  • Barrick Gold Corp. gained 1.2 percent to C$39.49.

Sources:

  • Bloomberg data
  • Euclid Infotech Pvt. Ltd. (Syndigate.info an Albawaba.com company)

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