The Conversation (0)
The S&P/TSX Composite index bounced back Friday after taking a hit Thursday. The decline came after less-than-impressive quarterly results from a number of companies prompted investors to take a step back.
The index ended Thursday at 15,224.52 points after declining 122.82 points, or 0.8 percent. However, Friday saw it rise the most in nearly five weeks when it hiked back up by 115.25 points, or 0.76 percent.
As mentioned, Thursday’s drop has been attributed to lackluster quarterly earnings reports from a few major producers listed on the TSX. For example, Goldcorp (TSX:G,NYSE:GG), the world’s biggest gold producer based on market value, saw its share price fall 6.2 percent, to $22.71, after the release of its first quarter results.
Meanwhile, Potash Corporation of Saskatchewan (TSX:POT,NYSE:POT), the world’s largest fertilizer company, missed its quarterly forecast and also cut its profit outlook for 2015; the news directly affected its share price, which fell 1.3 percent to hit $39.40. Canada’s largest energy company, Suncor Energy (TSX:SU,NYSE:SU), also saw a drop in share price after its operating profit missed estimates and the oil price dropped.
Back up on Friday
Happily for investors, the index’s drop didn’t last long given Friday’s rebound. Backing the gain were financial groups, mining companies and the energy sector, which got a much-needed boost. Valeant Pharmaceuticals International (TSX:VRX,NYSE:VRX) proved to be the most influential stock, rising 3.65 percent to reach $271.19 after increasing its earnings and sales forecasts for the year.
On the mining side, Agnico Eagle Mines (TSX:AEM,NYSE:AEM) saw a notable gain, with its share price going up 5.67 percent to hit $38.59. Similarly, First Quantum Minerals (TSX:FM) went up by 5.63 percent, reaching $19.52, after the copper price went up 6.4 percent — that’s the metal’s biggest advance since December 2011. Lundin Mining (TSX:LUN) also saw a 5-percent boost in its share price, while the share price of HudBay Minerals (TSX:HBM) went up 4.86 percent to reach $12.51.
Interestingly, even the iron ore space saw some brightness, with Labrador Iron Ore Royalty (TSX:LIF) gaining 1.5 percent to reach $14.62.
While it remains to be seen whether the S&P/TSX Composite will retain Friday’s gain, it’s worth noting that overall the index rose 2.2 percent for the month of April. Year-to-date it’s up 707.33 points, or 4.83 percent, and in the last year it’s risen 574.62 points, or 3.89 percent.
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.