For the 4th straight day, Canadian stocks have increased as both the metals miners and industrial companies posted big rallies. Apart from that, investors weighed the pacing of the US Federal Reserve stimulus measures. The benchmark gauge Standard & Poor’s/TSX Composite Index, also known as SPTSX, increased by 33.91 points and the same is currently at 12,776.34. The index pared the earlier gains of around 1.2%. On the last 4 trading days, the gauge has advanced by 2.4%. On a whole, the trading volume was 22% higher, if compared with the average of the last 30 days.
According to the Portfolio Manager of Stenner Investment Partners, Youssef Zohny, thanks to the comments made by Bernanke, the morning started off pretty well for the Canadian stocks. With the minutes of FOMC, as they talk more of stabilization now, the market is taking it as less stimulus. Though less stimulus is positive on medium or long term, on short term basis, it’s negative in nature for markets.
Many of the officials of the Federal Reserve think that they should taper bond buying as early as the next policy maker meeting to be held between 17th June and 18th June, in case, the economic reports shows proper evidence of strong and sustained growth. The details were released in the minutes of the 30th April – 1st May meeting held.
The S&P/TSX Materials Index increased by 1.5% on today after advancing by 1.6% on yesterday. In 2013, the gauge has experienced a decline of 24% as the gold prices retreated into a bear market. Among companies, Goldcorp went ahead by 2.6%, whereas, Barrick Gold advanced by 1%.
First Quantum Minerals advanced by 2% and each share is priced at C$19.27 now. Copper Futures rose to a figure that’s the highest in the last 5 weeks. On the other hand, Teck Resources increased by 2.9% and each share of the same costs C$29.32 now.
Copper Mountain Mining saw its shares increasing by 9.9% and each share is now priced at C$1.78. The company announced that it will be replacing its damaged transformer at its mine in the Southern British Columbia and the operations had resumed before the estimated timeframe. The transformer problem was disclosed by the company on 17th May after the regular trading ended and after the news came out, the stocks went down by 9.5%.