TSX ends in the red, May 2–6

The Toronto stock market declined during the first week of May on the back of lower commodity prices and weak economic data. Statistics Canada reported the economy lost 2,100 jobs overall in April, while the unemployment rate remained at 7.1%. The report showed the manufacturing sector lost 17,000 jobs last month.

In another release, Statistics Canada noted the country’s trade deficit grew to a record $3.4 billion in March, up from $2.5 billion in February, as exports decreased.

Canada’s benchmark index fell 1.8% to 13,701.47, while the S&P/TSX Capped Diversified Metals & Mining Index erased most of the gains from the earlier week, plunging 10.8% to 530.02. The S&P/TSX Global Mining Index dropped nearly 4% to 58.37 and the S&P/TSX Global Gold Index stayed relatively flat at 228.61.

In commodities, oil futures sank despite the wildfire in Alberta’s oilsands region, which has affected Canada’s daily oil production. The June contract for crude oil retreated 2.7% to US$44.66 per barrel, while the Brent crude oil futures sank 5.7% to settle at US$45.37 per barrel. Spot gold declined 0.4% to US$1,287.70 per oz. The loonie closed slightly lower at US77.41¢.

Franco Nevada reported headline earnings of US$30 million, or US18¢ per share in the first quarter. Adjusted earnings were US17¢ per share, beating analysts’ estimates of US15¢ per share. Gold equivalent production came in at 106,621 oz., up 25% from the same period in 2015. Revenue grew 21% to US$132 million. The company announced it is debt free again and has increased its quarterly dividend 4.8% to US22¢ per share. At the end of March, it had US$186 million in cash and short-term investments, and US$1 billion in available credit facilities. Franco-Nevada advanced $2.48 per share to finish at $90.50.

Endeavour Mining reported first-quarter earnings of US$1 million, down from US$9 million a year ago. Adjusted earnings sank 81% to US5¢ per share. Analysts had estimated an adjusted profit of US21¢ per share. Despite the miss, production grew 6% year-over-year to 131,567 oz. gold. All-in sustaining costs fell to US$900 per oz., compared to US$946 per oz. the year before. Excluding the divested Youga mine, all-in sustaining costs averaged US$889 per oz. gold. The stock gained $1.11 to close at $18.

Alberta-based Suncor Energy was the biggest value loser. The firm noted that while its assets and operations in the Fort McMurray region were unaffected by the raging wildfire, it shut down operations at its base plant, MacKay River and Firebag as a precaution. In its latest May 8 update, the company said it moved over 10,000 people — including employees and residents — out of the region. The Syncrude joint venture, which is partly owned by Suncor, also shut down facilities in the region. Suncor fell $2.99 per share to $33.84, on 24.2 million shares traded.