Daily Wrap-Up: TSX flat, oil lowest for 7 months

TSX flat, oil lowest for 7 months... Analysts welcome Home Capital settlements... Manufacturing sales have hit a record high...

Daily Wrap-Up: TSX flat, oil lowest for 7 months
Steve Randall
TSX flat, oil lowest for 7 months
The main TSX index closed flat Thursday as healthcare and energy led six sector groups lower while telecoms led slim gains for the rest.

Oil prices were in focus and ended the session at a 7-month low as investors and analysts become increasingly concerned about the output of some OPEC nations while the US stockpiles are also rising.

Wall Street, and indexes in Europe and Asia were also largely lower with many still digesting the latest interest rate rise from the Fed.

The S&P/TSX Composite Index closed down 9.71 (0.06 per cent)
The Dow Jones closed down 14.66 (0.07 per cent)
Oil is trending higher (Brent $46.87, WTI $44.40 at 4.35pm)
Gold is trending lower (1256.20 at 4.35pm)
The loonie is valued at U$0.7531

Analysts welcome Home Capital settlements
Two settlements agreed by Home Capital with the OSC and a class action lawsuit, have been welcomed by analysts.

The settlement with the regulator includes a $10 million plus costs, some of which will go towards damages in the class action of $29.5 million. Three former executives will also be banned from acting as directors for a period of time and pay fines totalling $2 million.

In a statement, Brenda Eprile, Chair of the Home Capital Board said:

“Home Capital will accept full responsibility for failing to meet its disclosure obligations to the marketplace and appreciates the importance of the serious concerns raised by the Commission with respect to continuous and timely disclosure. The Company also acknowledges that the Commission is not to blame for the events of recent months involving its liquidity position.” 

Manufacturing sales have hit a record high
There was a 1.1 per cent rise in Canadian manufacturing sales in April with a new high of $54.4 billion.

Higher sales for petroleum and coal product, and primary metals industries drove the gains but paper, food and machinery industries also saw strong gains.

Statistics Canada reported Thursday that transportation equipment was the weakest sector with losses mainly due to lower sales of motor vehicles and their parts.

Eight provinces saw higher sales overall, with Manitoba and Saskatchewan recording lower sales.