TSX Flat After Four-session Gain - Canadian Commentary

(RTTNews) - After moving higher in the past four straight sessions, Canadian stocks were little changed Friday morning amid buying in energy stocks and on varied cues from the global equity markets. Gains were tempered by nagging concerns about China's economic growth after China's Finance Minister Lou Jiwei cautioned the economy will likely grow at a slower pace than the government's official growth target for the year.

Meanwhile, the European markets are moderately higher as the euphoria unleashed by Federal Reserve Chairman Ben Bernanke's dovish remarks on Wednesday continued to have some influence on the market.

The S&P/TSX Composite Index edged up 7.21 points or 0.06 percent to 12,500.47, after gaining over 350 points or nearly 3 percent in the past four sessions.

The price of crude oil was flat Friday morning as traders await fresh triggers. Supply disruptions in the Middle East support oil prices. Yesterday, oil leveled off from its 16-month high after the International Energy Agency projected increased supply from sources outside the Organization of Petroleum Exporting Countries, which could outstrip demand. The International Energy Agency forecast supply from non-OPEC countries to grow 1.3 million barrels a day next year, with supplies to rise 1.2 million barrels a day this year. The agency also lifted its global oil demand forecast for 2013 and has forecast demand to grow by 1.2 mbd in 2014.

Crude for August eased $0.01 to $104.90 a barrel.

In the oil patch, Niko Resources (NKO.TO) surged over 4 percent, while Pacific Rubiales Energy (PRE.TO) adding over 2 percent.

On the other hand, Suncor Energy (SU.TO) slipped 0.50 percent..

Financial services provider Scotiabank (BNS.TO) edged up 0.40 percent after it said it has withdrawn its application to buy a 19.99 percent stake in the Bank of Guangzhou, announced in September of 2011.

Bio pharmaceutical company Medicago Inc. (MDG.TO) gained 21 percent after announcing that it would be acquired by Mitsubishi Tanabe Pharma Corp. or MTPC for C$1.16 cash per share. The purchase price represents 22.1 percent premium to the latest closing price of C$0.95 and 46.8 percent premium over the 30-day volume weighted average prices of C$0.79 on the TSX.

Expedited bill payment company TIO Networks Corp. (TNC.V) surged over 20 percent after it said it would acquire Globex Financial Services Inc., and its operating business Global Express Money Orders Inc. Globex is a bill payment services provider to some of the largest utilities in the U.S.

The price of gold was moving lower Friday morning as the US dollar steadied after recent dips. Gold for August delivery eased $2.80 to $1,277.10 an ounce.

Among gold plays, Alamos Gold (AGI.TO) dived 5 percent after it said it would acquire Esperanza Resources Corp. (EPZ.V) by way of a court-approved plan of arrangement for C$0.85 in cash for each common share of Esperanza. Shares of Esperanza skyrocketed about 35 percent.

Agnico-Eagle Mines (AEM.TO) and Goldcorp. (G.TO) were down nearly 2 percent each.

Specialty and packaging papers company Domtar Corp. (UFS.TO) lost over 5 percent after announcing that it expects second-quarter sales to be $1.312 billion and estimates the operating loss to be between $30 million and $35 million.

In economic news from the U.S. the Labor Department said its producer price index rose by 0.8 percent in June following a 0.5 percent increase in May. Economists had been expecting the price growth to match the increase seen in the previous month. Excluding food and energy prices, core producer prices edged up by 0.2 percent in June after inching up by 0.1 percent in May. The increase in core prices matched economist estimates.

Meanwhile, according to a report released by Thomson Reuters and the University of Michigan Consumer sentiment in the U.S. has seen a modest deterioration in the month of July, with the index dipping to 83.9 in July from the final June reading of 84.1. Economists had expected the index to come in unchanged compared to the previous month.

Elsewhere, euro zone industrial production declined 0.3 percent month-on-month in May, in line with expectations, reversing April's 0.5 percent rise, data from Eurostat showed. The decline was driven by a 1.5 percent fall in capital goods output and 2.3 percent decrease in durable consumer goods. On a yearly basis, industrial production slipped 1.3 percent, more than double the 0.6 percent drop seen in April. The annual rate of decline matched economists' expectations.