Canadian Stocks Gain as Investors Seek Safe Haven in Gold

Strategic Insights -

Canada's stock market rose for a third consecutive day, with mining companies leading the charge, as investors sought refuge in gold amid concerns over Greece's debt crisis. Goldcorp Inc., Canada's second-largest gold-mining company, was particularly strong, gaining 1.9% after being added to Toronto-Dominion Bank's Action List of top stocks. However, the sector was not without its losers, with Aastra Technologies Ltd. plummeting 16% after missing earnings estimates. Meanwhile, the country's largest pipeline system owner, TransCanada Corp., fell 1.2% as crude futures declined.

Key Takeaways:

  • Goldcorp Inc. gained 1.9% after being added to Toronto-Dominion Bank's Action List of top stocks.
  • Aastra Technologies Ltd. plunged 16% after missing earnings estimates by 69% excluding certain items.
  • TransCanada Corp. dropped 1.2% as crude futures declined.
  • The S&P/TSX Composite Index advanced 21.03 points, or 0.2%, to 12,134.56.
  • The cost of credit-default swaps insuring against Greek government debt surged to a record high, according to CMA DataVision prices.
  • Seven of the world's 20 largest gold producers are based in Canada, according to Bloomberg data.
  • Gold prices have increased 7.6% as the U.S. dollar's rally has slowed.
  • The Greek government is holding talks with the EU, European Central Bank, and International Monetary Fund on a 45 billion-euro ($60 billion) aid package.

Statistics:

  • Gold prices rose 0.8% to $1,148.80 an ounce, the most in two weeks.
  • Goldcorp Inc.'s stock price advanced 1.9% to C$39.53.
  • None of the eight Canadian publicly traded banks declined after Morgan Stanley reported earnings that topped analyst estimates.
  • The U.S. Energy Department reported that inventories of crude oil increased last week.
  • Crude oil fell 0.2% to $83.68 a barrel.
  • Energy shares retreated, with Suncor Energy Inc. falling 0.5% to C$34.07.

Sources:

  • Bloomberg
  • CMA DataVision
  • C$45 million (as reported by Youssef Zohny, associate portfolio manager at Van Arbor Asset Management Ltd.)
  • Gold prices data from Bloomberg
  • Goldcorp Inc.'s stock price data from TD analyst Greg Barnes' report