By Wallace Witkowski, MarketWatch
SAN FRANCISCO (MarketWatch) — Canadian stocks rose Friday as strength in the non-gold mining and industrial sectors overcame lower gold prices and weak jobs data.
Shares of Teck Resources Ltd. closed up 2.1% and Ivanhoe Mines Ltd. /zigman2/quotes/207656050/delayed CA:IVN -0.96% shares rose 3.5%. Shares of Lundin Mining Corp. /zigman2/quotes/201246870/delayed CA:LUN -3.72% rose 3.3% following reports that it acquired a 15.4% stake in Salazar Resources Ltd.
The S&P/TSX Composite Index rose 0.2% with the heavily-weighted S&P/TSX Capped Diversified Metals and Mining Index up 2%.
U.S. companies posting higher profits, paying little
U.S. companies are booking higher profits than ever. Yet corporate tax receipts as a share of profits are at their lowest level in at least 40 years. Damien Paletta report. Photo: AFP.
Just behind that, the S&P/TSX Capped Industrials Index /zigman2/quotes/210598464/delayed XX:TORGC193 +0.71% rose 1.2% as shares of Canadian National Railway Co. /zigman2/quotes/203746923/delayed CA:CNR +1.75% gained 0.9% and Canada Pacific Railway Ltd. /zigman2/quotes/205690198/delayed CA:CP -0.69% shares advanced 2.3%.
The broader market managed to keep its head above water after the Canadian government said the unemployment rate rose to 7.6% from 7.5%, and fewer than expected jobs were added to the economy.
“January’s dismal employment gain and rise in the unemployment rate are further signs that the economy ended last year on a weaker footing,” David Madani, an economist with Capital Economics, wrote in a research note. “Given the headwinds confronting Canada’s economy, we doubt economic growth is about to rebound significantly anytime soon. As such, we think more monetary policy stimulus will soon be needed.”
In comparison, the U.S. added 243,000 jobs in January and unemployment fell to 8.3% from 8.5%. The Canadian dollar /zigman2/quotes/210561978/realtime/sampled USDCAD -0.1428% rose against its U.S. counterpart with the greenback buying 99.30 Canadian cents, compared with 99.93 Canadian cents late Thursday.
Canada’s three largest banks also closed in positive territory, with shares of Royal Bank of Canada /zigman2/quotes/200638870/delayed CA:RY +0.54% , Toronto-Dominion Bank /zigman2/quotes/209283160/delayed CA:TD +0.48% and Bank of Nova Scotia /zigman2/quotes/206642548/delayed CA:BNS -0.10% all finishing up 0.5% or more.
The major drag on the broader market was gold mining stocks as gold prices for April delivery settled down 1.8% at $1,727.90 an ounce on the New York Mercantile Exchange.
Shares of Barrick Gold Corp. /zigman2/quotes/209252292/delayed CA:ABX +1.23% dropped 2.3%, Goldcorp Inc. /zigman2/quotes/225792379/delayed CA:G 0.00% shares shed 2.9%, Yamana Gold Inc. /zigman2/quotes/206359073/delayed CA:YRI +0.58% shares fell 3.4%, and shares of Kinross Gold Corp. /zigman2/quotes/200423011/delayed CA:K -0.26% shed 1.7%.