MW: Canadian stocks end high as Hudbay trades heavily
By Rebecca L. McClay, MarketWatch
SAN FRANCISCO (MarketWatch) -- Canadian closed up Wednesday, as a rebound in metals and mining helped override a slightly bleaker outlook for the domestic housing market.
The S&P/TSX Composite Index (CA:$ISPTX 11,781, +208.70, +1.80%) gained 1.8%, led by the S&P/TSX Capped Diversified Metals and Mining Index (CA:TTMN 902.97, +36.44, +4.21%) , which gained 4.2%.
Shares of Uranium One (CA:UUU 2.48, +0.24, +10.71%) soared 10.7% to $2.48 a share as Teck Resources rallied 4.2%. Demand for nuclear energy is increasing, particularly in Asia. See Commodities Corner for more on uranium prices.
Hudbay Minerals stock , which was up 5.9%, was among the most heavily traded stocks, trading at roughly 218% of its average daily volume. Nearly 4.8 million shares were traded, versus a daily average of 1.5 million.
Energy stocks showed increases along with energy prices. The S&P/TSX Capped Energy Trust Index (CA:RTEN 141.19, +2.58, +1.86%) rose 1.9%. Crude oil for July settled 28 cents higher, or 0.8%, to $72.86 a barrel Wednesday. See Futures Moves for more on energy prices.
Canadian stocks may have had a boost from a positive housing report in the U.S. Wednesday morning and a rebound in U.S. stocks.
The Canadian Real Estate Association lowered its forecast for domestic housing sales this year and next year, saying sales will likely increase by only 5.5% this year instead of the 13% it had predicted in February. The association now anticipates home sales will fall by 8.5% in 2011, and prices will fall in tandem.
Financial markets did not fare as well as the broader market. The S&P/TSX Capped Financials Index (CA:TTFS 179.13, +2.71, +1.54%) slipped by 0.5%.
The Canadian dollar appreciated 1.6% Wednesday, with one U.S. dollar purchasing C$1.0388.
Alimentation Couche-Tard Inc., (CA:ATD.A 19.70, +0.95, +5.07%) a Quebec convenience store operator, announced it will take a bid it launched in April to take over Iowa-based Casey's General Stores Inc. (CASY 36.39, +0.05, +0.14%) to shareholders of Casey's, according to media reports. The hostile bid is for US$36 a share; Casey's closed Wednesday at US$36.39.
