TSX bounces back after 5-day plunge

Wed Apr 11, 2012 4:54pm EDT
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By Claire Sibonney

TORONTO (Reuters) - Toronto's main stock index rebounded on Wednesday in a broad-based rally following five straight days of losses that took Canadian shares to their lowest level this year.

The market took its cue from a rebound on Wall Street a day after aluminum producer Alcoa Inc (AA.N: Quote) surprised investors with a first-quarter profit, an encouraging start to earnings season.

The most influential gainer was Canadian National Railway (CNR.TO: Quote), up 2.4 percent to C$77.84, after its smaller rival Canadian Pacific Railway (CP.TO: Quote) on Tuesday forecast a four-fold increase in first-quarter earnings.

CP Railway was up 1.6 percent to C$74.40.

Among other heavy advancers, Suncor Energy (SU.TO: Quote) rose 1.5 percent to C$30.12, Royal Bank of Canada (RY.TO: Quote) added 0.6 percent to C$56.30 and Bank of Nova Scotia (BNS.TO: Quote) climbed 1 percent to C$54.91.

"We've been down for so many days in the last week that we're finally due for an up day, but I still think we're going to have some continued weakness in the markets from here," said Arthur Salzer, chief executive officer of Northland Wealth Management.

The recent string of selloffs was prompted by a resurgence of fears about global growth, including disappointing U.S. employment data, signs of soft domestic demand in China and a flare-up of European debt jitters.

"We are getting a lot of news from Spain in regards to their banking system and their availability of money. Things look very very tight," added Salzer.   Continued...

An electronic board displays the midday TSX index in Toronto February 16, 2011. REUTERS/Mark Blinch