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CANADA STOCKS-TSX rises in choppy trading; energy bounce offsets poor earnings

Published 2015-07-30, 11:31 a/m
CANADA STOCKS-TSX rises in choppy trading; energy bounce offsets poor earnings
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(Updates throughout with analyst comment, market reaction,
details on earnings)
* TSX up 68.36 points, or 0.48 percent, to 14,370.16
* Seven of the TSX's 10 main groups were up

By Solarina Ho
TORONTO, July 30 (Reuters) - Canada's main stock index was
higher in extremely choppy trading on Thursday as a solid
rebound in energy stocks due to bargain hunting and oil prices
bouncing off recent lows offset disappointing earnings.
Among the most influential movers on the index were Suncor
Energy Inc SU.TO , which rose 5.57 percent to C$36.55, and
Canadian Natural Resources CNQ.TO , which advanced 2.5 percent
to C$31.52. The hefty energy sector climbed 3.1 percent.
A larger-than-expected draw in U.S. crude and gasoline
stocks as well as data that showed a decline in U.S. oil
production helped oil prices LCOc1 CLc1 steady after they
had fallen to near six-month lows in recent sessions.
Some of the energy names, such as Suncor and independent oil
producer Cenovus Energy Inc CVE.TO , also did not react as
expected following their earnings reports, said Colin
Cieszynski, Senior market analyst at CMC Markets Canada.
Cenovus shares climbed 2.9 percent to C$19.15 despite the
company slashing its quarterly dividend by 40 percent and
announcing another round of job cuts. ID:nL3N10A4AV
"I think what we're seeing here is probably a bit of
short-covering and bargain-hunting, just trading against the
news," said Cieszynski.
"Even though the results were disappointing, the stocks had
been pretty solidly hammered already. I suspect there was
already substantial disappointment already priced in."
At 11:17 a.m. (1517 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 68.36 points, or 0.48
percent, to 14,370.16.
Of the index's 10 main groups seven were in positive
territory, with advancing issues outnumbering declining ones on
the TSX by 131 to 115, for a 1.14-to-1 ratio on the upside.
Open Text Corp OTC.TO was the second-biggest driver for
the TSX bounce, surging 19.2 percent to C$58.08 after the
company revenue beat estimates for the first time in four
quarters and raised its fiscal 2016 operating margin forecast.
ID:nL3N1095YP
The overall tech group was up 1.4 percent.
Offsetting gains was a 0.3 percent fall in materials, home
to mining companies, and a 1.9 percent fall in utilities.
Disappointing many investors was Bombardier Inc BBDb.TO ,
which announced it was delaying delivery of its latest Global
business jet. It also reported lower earnings and greater cash
burn. Shares sank 8.7 percent to C$1.78 after plunging as much
as 15.9 percent earlier.
First Quantum Minerals FM.TO earnings also fell short of
expectations, which sent shares tumbling 11.7 percent to C$9.98.

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