Tweet

 

TSX edges down as key Greece vote nears, Enbridge shares drop on disappointing results

Toronto's main market fell into red territory Friday afternoon ahead of the long weekend, as some quarterly numbers from Canadian companies came in worse than expected, and as investors exercised caution ahead of a key vote for Greece's second bailout.

The main S&P/TSX Comoposite was down 31.03 points, or 0.25%, to 12,454.56, while the more junior S&P/TSX Venture Composite gained 2.02 points, or 0.12%, to 1,650.13.

Eurozone finance ministers are now due to meet on Monday, when they will vote on Greece's latest economic reform proposal. Their approval is necessary for the debt-stricken country to receive more bailout funds in order to avoid default on a 14.5 billion euro bond payment in March.

While traders are optimistic, they are still cautious of the situation.

Commodities were mixed, with crude oil for March delivery up 0.98% to $103.32 a barrel, and gold for April down 0.14% to $1,726.0 an ounce.

The silver contract fell 0.3% to $33.27 an ounce, while base metal copper declined 1.9% to $3.73 a pound.

In Toronto, materials and metals and mining were the biggest declining sectors, with healthcare, info-tech and financials also falling in the red.

Industrials and energy, meanwhile, were the two biggest gainers.

Among energy, Suncor Energy (TSE:SU) was down 0.44%, while Talisman Energy (TSE:TLM) gained nearly 2.5%.

Pipeline and energy company Enbridge (TSE:ENB) shares were down more than 3.4% Friday after it reported slightly higher fourth-quarter net earnings as it said it would increase its dividend by 15 percent.

The Calgary-based company said earnings were $335 million, or 44 cents per share, in the fourth quarter, compared to $326 million, or 44 cents per share, a year earlier. Adjusted fourth-quarter earnings were $275 million or 37 cents per share, falling short of the 39 cents analysts expected.

Enbridge said fourth quarter results were hit by reduced earnings from gas distribution due to warmer than normal weather and a $29 million charge related to insurance recoveries. Results also included $98 million in income taxes on an inter-company sale.

Meanwhile, Encana (TSE:ECA) shares were up 0.5% after its said Encana it will sell a 40 percent interest in its Cutbank Ridge partnership to Mitsubishi Corp for $2.9 billion.

Cutbank Ridge covers some 409,000 net acres in the undeveloped Montney-formation natural gas lands in northeastern British Columbia, which have proved undeveloped reserves of about 900 billion cubic feet of natural gas equivalent. Encana and Mitsubishi will jointly develop the project, moving it to production.

Under the terms of the agreement, Encana will maintain a 60 percent interest in the property, and will act as project manager and operator.

Among materials, Kinross Gold (TSE:K) and Barrick Gold (TSE:ABX) fell 2.17% and 2.2%, respectively, while copper heavyweight Teck Resources (TSE:TCK.B) dropped 2.6%.

In other news, Fairfax Financial Holdings (TSE:FFH) fell over 6% after it reported a loss in its most recent quarter.

Cott (TSE:BCB) (NYSE:COT) also saw its stock drop on Friday, as it swung to a loss in the fourth quarter on higher commodity costs. Cott is the world's largest producer of private-label beverages, including soft drinks, juice, and water. It has bottling plants in the United States, Canada, Mexico and the United Kingdom.

Brookfield Asset Management (TSE:BAM.A)(NYSE:BAM) said Friday it would increase its quarterly dividend by eight percent, despite reporting that its fourth quarter profits halved.

In economic news, Statistics Canada said that underlying core inflation -- which excludes volatile items -- rose to 2.1%, one-tenth of a percentage point higher than the Bank of Canada's target.

The composite leading index increased 0.7% in January, mostly due to manufacturing, housing and services employment.

US/Europe

US equities were mixed Friday afternoon, with the Dow lately up 0.26%, the Nasdaq down 0.33%, and the S&P 500 up 0.2%.

Campbell Soup Company (NYSE:CPB) said Friday its fiscal second quarter profits declined as US soup sales fell, but earnings still beat Street estimates. The soup maker also reiterated its full year fiscal 2012 guidance.

Campbell said it continues to expect revenue growth between flat and two percent, and adjusted earnings between $2.35 and $2.42 per share.

Heinz Co. (NYSE:HNZ) Friday reported higher-than-expected fiscal third-quarter profits, helped by growth in emerging markets, as the soup and sauces maker narrowed its full-year outlook.

Applied Materials (NASDAQ:AMAT) late Thursday posted fiscal first-quarter earnings which indicating that the firm's main chip equipment business is rebounding after the recent cyclical slowdown in that market.

Nordstrom (NYSE:JWN) late Thursday reported a 1.7 percent rise in fourth-quarter earnings as the high-end retailer's designer category continued to lift its bottom line.

Shares of Brightcove (NASDAQ:BCOV), known for its Internet video platform, jumped almost 35% in its IPO. The company's shares were priced at $11 and soared to about $14.83.

On the economic front in the US on Friday, the Consumer Price Index rose 0.2% in January, after remaining steady the two months prior. Analysts were expecting a rise of 0.3%.

Core inflation rose 0.2%, compared to estimates for a 0.1% rise.

The Conference Board's Leading Economic Indicators index edged up 0.4% in January, less than the expectation for a 0.5% increase.