TORONTO - The resource-heavy Toronto stock market was one of the few markets to rise Monday as traders generally avoided risk in the wake of Russia's invasion into Ukraine's Crimean peninsula.
The S&P/TSX composite index edged up 6.57 points to 14,216.16 as energy and gold stocks rose alongside oil and bullion prices.
Gains in commodities helped support the Canadian dollar, which was faring better than some other currencies. The loonie rose a slight 0.01 of a cent against the greenback to 90.31 cents US.
Investors generally sought the safe-haven status of U.S. dollars and Treasuries after Russia took effective control of the Crimean peninsula, calling it a necessary protection for the country’s citizens living there. There are worries that Russia might seek to expand its control by seizing other parts of eastern Ukraine.
U.S. indexes tumbled as traders weighed the potential economic consequences of Russia's move.
"It’s a surprise, I don’t think we’ve had this level of political events impact the markets in some time," said Patrick Blais, managing director and portfolio manager at Manulife Asset Management.
The Dow Jones industrials plunged 187.57 points to 16,134.14, the Nasdaq gave back 46.4 points to 4,261.72 and the S&P 500 index fell 17.97 points to 1,841.48.
On the economic front, U.S. consumer spending rose 0.4 per cent in January following a tiny 0.1 per cent gain in December. Income grew 0.3 per cent in January following no increase at all in December.
And the Institute for Supply Management's manufacturing index showed greater expansion in the sector, rising to 53.2 during February from 51.3 in January.
The gold sector led TSX advancers, up 3.1 per cent while traders seeking safety pushed April bullion up $31.20 to US$1,352.80 an ounce.
"Gold is a sentiment-driven market and the (gold) equities as well," observed Blais.
"And with news of this sort, gold names could have a pretty good run. The backdrop is definitely supportive, with the uncertainty I think they’ll keep moving higher."
The energy sector rose 0.4 per cent while oil prices spiked well over $2 as Russia’s military advance into Ukraine raised fears of economic sanctions against a country that is one of the world’s major energy producers. The April contract in New York jumped $2.60 to US$105.19 a barrel.
The base metals component led decliners, down 1.45 per cent as May copper lost two cents to US$3.17 a pound. Prices for the metal were also pressured by Chinese data as both the official and HSBC versions of the country's monthly manufacturing survey showed the sector was weaker last month than in January.
On the earnings front, Magna International's (TSX:MG) quarterly net earnings rose 31 per cent from a year ago to US$458 million or $2.03 a share as sales jumped 14 per cent to US$9.17 billion. The company also raised its quarterly dividend by 19 per cent to 38 cents per share and Magna shares gained $2.66 to $101.23.
Pengrowth Energy Corp. (TSX:PGF) had an $91.1 million net loss or 17 cents per share during the fourth quarter. Analysts had expected a net loss of three cents a share and its stock slipped 23 cents to $7.23.