TSX index edges up with help from strong Rogers earnings, Nasdaq hits another high

By Linda Nguyen, The Canadian Press

TORONTO – The Toronto stock market chalked up a small gain Thursday, helped by rising shares in Rogers Communications.

The S&P/TSX composite index was ahead 19.93 points at 15,264.64 as the telecom sector led advancers while metals and energy stocks declined.

Shares in Rogers (TSX:RCI.B) climbed 1.36 per cent after the media company reported a 35 per cent increase in second-quarter profits amid strong wireless subscriber growth. Its shares ended the day up 87 cents to $64.88 on the TSX.

The Toronto-based company reported that it added 93,000 contract subscribers to its wireless division, above some analyst estimates. The gain helped it offset slightly weak cable subscriber growth.

Overall net income was $531 million or $1.03 per share, while adjusted profit was $1 per share. That’s up from $394 million or 77 cents per share of net income and 83 cents per share of adjusted income in last year’s second quarter.

Analysts had estimated Rogers (TSX:RCI.B) would have 90 cents per share of net income, or 93 cents per share after adjustments, according to Thomson Reuters.

Revenue was up four per cent from last year’s second quarter.

“It was a nice, positive surprise, especially in Canada when the expectations are usually lacklustre going into Q2,” said Philip Petursson, chief investment strategist at Manulife Asset Management.

New York indexes were mostly quiet. That came as the European Central Bank is maintaining its current stimulus policies, with ECB president Mario Draghi saying the central bank hasn’t set a date for considering changes.

Investors had been startled a month ago when Draghi discussed gradual reductions in stimulus as Europe’s economy gets stronger. They responded, pushing the euro higher and buying long-term bonds.

On Wall Street, the Dow Jones industrial average was down 28.97 points to 21,611.78 and the S&P 500 index dipped 0.38 of a point to 2,473.45.

The Nasdaq composite index rose to a record high for a third session in a row, gaining 4.96 points to 6,390.00.

The Canadian dollar was trading at an average price of 79.46 cents US, up 0.06 of a cent.

In commodities, the September crude oil contract lost 40 cents to US$46.92 per barrel and the August natural gas contract dipped two cents to US$3.04 per mmBTU.

The August gold contract was up US$3.50 to US$1,245.50 an ounce and the September copper contract was up one cent to US$2.72 a pound.

Follow @LindaNguyenTO on Twitter.

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