The Dollarama discount store near Bloor St. West and Bathurst St. in Toronto, is photographed Feb. 12 2014.Fred Lum/The Globe and Mail
Positive corporate earnings helped give the Toronto stock market a modest advance on Thursday.
The S&P/TSX composite index was ahead 29.80 points to 15,501.69 with the TSX held back by energy stocks as a report forecast lower global demand for crude.
The Canadian dollar dropped 0.6 of a cent to 90.85 cents (U.S.).
U.S. markets were in the red with the Dow Jones industrials down 56.29 points to 17,012.42, the Nasdaq shed 14.5 points to 4,572.02 while the S&P 500 index declined 4.68 points to 1,991.01.
Meanwhile, quarterly net earnings from Empire Co., parent of grocer Sobeys, were $123.1-million (Canadian) or $1.33 per share, up from $65-million or 95 cents a share a year earlier.
Adjusted net earnings were $131.7-million or $1.43 per share, well ahead of analyst expectations of $1.35 per share and its shares gained $1.11 to $75.53.
Discount chain Dollarama increased its second-quarter net profit to $68.8-million, or $1.03 per share, compared with $59.7-million, or 82 cents per share, a year ago. Sales increased by 12 per cent to $572.6-million. It also announced a two-for-one stock split. Its shares were unchanged at $93.87.
Tour package operator Transat said quarterly net earnings came in at $25.8-million, or 66 cents per share, compared with $41.1-million, or $1.07 per share, a year ago, largely because of the impact of fuel-hedging accounting during 2013. Revenues were up at $941.7-million, compared with $927-million year-over-year and shares gained 12 cents to $8.96.
And Lululemon reported a lower second-quarter profit of $48.7-million or 33 cents per share, compared with $56.4-million, or 39 cents per share a year ago. Revenue for the quarter was up 13 per cent to $390.7-million. Its stock jumped 17 per cent to $44.95 (U.S.) in New York as the Vancouver-based company also raised its full-year adjusted earnings guidance after having lowered it in June.
"It does fit a trend that we're seeing, a very nice rebound in earnings among Canadian companies," said Stephen Lingard, managing director, Franklin Templeton Solutions.
"It fits the theme that many in Canada, including analysts, were too negative on the market and really this is behind why Canada is the second best performer in developed markets so far this year," Lingard said.
Meanwhile, the International Energy Agency said that it expects global oil demand to grow by 0.9 million barrels a day in 2014, a decrease of 65,000 barrels a day compared with last month's forecast and down by 300,000 barrels a day since July. The IEA blames economic weakness in Europe and China.
The TSX energy sector lost 0.3 per cent, while the October crude contract in New York erased early gains to rise 43 cents to $92.10 (U.S.) a barrel after closing at an eight month low Wednesday.
Weak inflation data pushed December copper down two cents to $3.09, but the base metals sector was ahead 0.05 per cent.
The gold sector was flat as December gold faded $5.40 to $1,239.90 an ounce.
The tech sector also helped lift the TSX with BlackBerry ahead 41 cents to $11.64 (Canadian) after the company said that it has acquired Movirtu, which has developed a system that allows multiple numbers be active on a single smartphone, for an undisclosed sum.