CANADA STOCKS-Miners lift TSX to highest-ever close
Across the Atlantic, U.S. equity markets also pointed to a firm open. The Dow futures pointed to a gain of 0.1%, the S&P 500 added 0.15%, while the Nasdaq 100 indicated a rise of 0.2%. The Institute of Supply Management is to publish a report on U.S. manufacturing activity later in the day.
Stocks Close Narrowly Mixed Following Lackluster Session - U.S. Commentary
Micron Technology (MU) helped lead the sector higher, surging up by 4.6 percent. Utilities, natural gas, and oil service stocks also saw some strength on the day, while airline and defense stocks saw moderate weakness. Other Markets In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng Index edged down by 0.1 percent.
Are Uranium Stocks a Good Contrarian Play?
"With low interest rates, a good outlook for profits and companies swimming in cash, the earnings multiples could continue to go higher," he added. Eight of the 10 main sectors on the index were higher on Monday. The materials sector, which includes mining stocks, advanced 0.5 percent, following gold and copper prices higher. Barrick Gold Corp jumped 1.7 percent to C$19.54, and Teck Resources Ltd climbed 2.1 percent to C$24.36. Financials, the index's most heavily weighted sector, were up slightly.
The costs of mining and processing uranium to sell into utility contracts has not fallen along with the uranium spot price. Companies like Cameco (NYSE: CCJ ) , Areva (NASDAQOTH: ARVCF ) , Denison Mines (NYSEMKT: DNN ) , and Uranium Participation Corp (NASDAQOTH: URPTF ) have had a tough time, especially compared to the booming S&P 500. Uranium Participation Corp is unique. It's not a uranium miner like the others, but an investment vehicle that owns physical uranium inventory. The stock is trading at a premium to its net asset value.