Overall, the Canadian stock market has reportedly been doing well in 2016. The dropping markets in January and its effect on oil prices made Canadian investors nervous. While the first few weeks of 2016 saw over 8% of the value of the Canadian benchmark being shed, things then took a turn for the better. And after the recent April slump, it is rising again.
Four-day Slump Gives Way to Growth
Tuesday, April 27, 2016, witnessed the slight rise of Canadian stocks after a four-day slump. Oil prices rose and the S&P/TSX Composite Index closed the session on a positive note at 13,809.44 with 13.45 points, which ended its longest losing trend in three weeks. The Canadian dollar strengthened 0.35 cents to 79.24 cents U.S.
Raw materials manufacturers were led higher by Teck Resources adding 4.2% following a first-quarter adjusted profit. Canadian National Railway Co, the largest railroad operator in the country reduced its profit target for the whole year as it slid to $78.57, a 5.1% decline which has been the lowest since the 4th of March. This has been amidst the weakened demand for coal, crude and other commodities. The company's 2016 adjusted earnings will be $4.44 per share, similar to that of 2015, which is lower than earlier forecasts.
Advancing Energy Stocks
Crescent Point Energy Corp. rose 2.1% or 44 cents to $21.56 while TransCanada Corp. rose to $50.95, an increase of 15 cents. These are examples of energy stocks advancing. In New York, oil actually closed highest in over five months in the midst of indications of a gradual diminishing of a global surplus.
Bombardier Inc, at $1.99, rallied 10.6% to have the highest closing since July 2015. This comes on the back of a $229 million-worth agreement with Chorus Aviation Inc for five aircraft plus an option for securing five more. Husky Energy, however, sank 9.2% to $15.93, the lowest since January. This has come following the company raising $1.7 billion in relief from the controller of the company, the richest man in Hong Kong, Li Ka-Shing, for some of the company's Canadian pipelines.
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