TORONTO — The Toronto stock market was slightly higher Tuesday amid rising prices for oil and metals and disappointing earnings from pipeline giant TransCanada (TSX:TRP).
The S&P/TSX composite index was ahead 24.82 points to 12,772.97 while the TSX Venture Exchange dipped 0.02 of a point to 1,196.18.
TransCanada Corp. (TSX:TRP) reported that its net income fell to $306 million or 43 cents per share. Its comparable earnings, which exclude most unusual items, declined to $318-million or 45 cents per share.
Analysts had been expecting 51 cents per share of net earnings and 49 cents per share of adjusted earnings.
TransCanada also said its quarterly dividend will rise by two cents per share to 46 cents for the quarter, an increase of five per cent and its shares slipped 59 cents to $47.66.
The Canadian dollar was up a slight 0.01 of a cent to 99.58 cents US as traders took in a statement by the Group of Seven leading industrialized countries, including Canada, which affirmed their commitment to exchange rates determined by markets and not government policy.
It also warned that volatile movements in exchange rates can adversely hit the global economy.
The statement came out prior to a weekend meeting of the Group of 20 finance ministers where exchange rates and the threat of a “currency war” are expected to feature heavily.
Attention has centred recently on the Japanese yen, which dropped Monday to its lowest level against the U.S. dollar since May 2010. The Japanese government, a G7 member, has not directly intervened to get the value of the yen down. But it has set in motion a string of economic policies, such as a higher two per cent target for Japanese inflation, that many in the markets think will lead to more money being created in Japan.
One parallel effect of that policy has been a rise in the euro, which threatens to make the region’s exports more expensive and hinder Europe’s economic recovery.
U.S. indexes were mainly positive as traders looked ahead to President Barack Obama’s state of the union address Tuesday evening.
The Dow Jones industrials was up 28.99 points to 14,000.23, the Nasdaq shed 0.11 of a point to 3,191.89 and the S&P 500 index was ahead 1.8 points to 1,518.81.
The tech sector led TSX advances, up 0.9% with Constellation Software (TSX:CSU) ahead $1.78 to C$122.78 and CGI Group (TSX:GIB.A) up 49 cents to $28.31.
The energy sector was ahead 0.5% as oil prices advanced, adding to Monday’s gain of more than $1 due largely to a weaker U.S. dollar. The March contract on the New York Mercantile Exchange gained 49 cents to US$97.52 a barrel. Canadian Natural Resources (TSX:CNQ) climbed 40 cents to C$30.91.
A U.S. agency has given the final approval required for the acquisition of Calgary-based Nexen Inc. (TSX:NXY) by CNOOC, one of China’s largest energy companies. The US$15.1-billion friendly takeover had broad implications in Canada and elsewhere, due to Nexen’s extensive holdings in Alberta’s oilsands, Gulf of Mexico and North Sea. The company says it now expects the deal to close this month. Nexen shares gained 59 cents to C$27.52.
The gold sector climbed 0.4% as April gold bullion on the Nymex edged $1.10 lower to US$1,648 an ounce. Iamgold Corp. (TSX:IMG) was ahead six cents to C$8.76.
Novagold Resources Inc. (TSX:NG) said Tuesday that the spinoff of its copper assets last year and other factors resulted in a $67.6-million net profit for the 2012 financial year, or about nine cents per share. The Vancouver-based company, which is in the development phase and not producing sales revenue, had $253-million in cash and equivalents when the year ended Nov. 30 and its shares edged up five cents to $4.42.
The base metals sector was ahead 0.23% while March copper in New York moved up two cents to US$3.74 a pound. Teck Resources (TSX:TCK.B) advanced 30 cents to C$33.59.
Over the rest of the week, traders will take in reports from resource giants including Talisman Energy (TSX:TLM), Cenovus Energy (TSX:CVE), gas giant EnCana Corp. (TSX:ECA) and Barrick Gold (TSX:ABX). Outside of the resource sector, Sun Life Financial (TSX:SLF), and telecoms Telus Corp. (TSX:T) and Rogers Communications (TSX:RCI.B) will also hand in results.
In the U.S., Coca-Cola reported that its profit rose 13% to $1.87-billion, or 41 cents per share, as global sales volume at the world’s biggest beverage company improved three per cent. Not including one-time items, Coca-Cola Co. earned 45 cents per share, a penny better than expectations. Revenue rose four per cent to $11.46-billion, which was slightly less than the $11.53-billion analysts expected and its shares were down 1.79% to US$37.92 in New York.
Despite the G7 statement, the yen remained stable as analysts observed that any country could claim that its loose monetary policy was aimed at helping the domestic economy, not setting the interest rate. There is little to stop the Japanese central bank, for example, from continuing to pursue its ultra-loose monetary policies.
Tokyo’s Nikkei 225, which closed before the G7 statement was released, rallied 1.9% Tuesday on the continued weakness of the yen.
South Korea’s Kospi fell 0.3% while benchmarks in Indonesia, Thailand and India rose. In Australia, the benchmark S&P/ASX 200 finished nearly unchanged.
Markets in mainland China, Hong Kong, Singapore, Malaysia and Taiwan were closed for Lunar New Year holidays.
European bourses were positive as London’s FTSE 100 index gained 0.61%, the Paris CAC 40 was up 0.55% while Frankfurt’s DAX edged up 0.17%.
The Canadian Press