TSX racks up biggest gain since January

Thu Apr 12, 2012 5:07pm EDT
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By Claire Sibonney

TORONTO (Reuters) - Toronto's main stock index notched its biggest gain since early January on Thursday, recovering from a string of losses as investors scooped up beaten down financial and commodity shares after lower yields on some euro-zone debt and rumors of a strong report on Chinese growth.

Canadian Natural Resources (CNQ.TO: Quote) jumped 4.2 percent to C$33.01, Manulife Financial (MFC.TO: Quote) surged 6.1 percent to C$13.40 and Suncor Energy (SU.TO: Quote) added 2.8 percent to C$30.95.

Gold miners were also sharply higher. Eldorado Gold (ELD.TO: Quote) spiked more than 11 percent to C$14.37 after the company said it expects annual gold production to touch 1.7 million ounces within five years as it brings new mines into production.

Barrick Gold (ABX.TO: Quote) climbed 1.8 percent to C$41.98 and Goldcorp Inc (G.TO: Quote) was up 2.4 percent to C$41.79.

"It's been a pretty nice bounce-back the last couple of days but ... my prediction is we're going to move somewhat sideways for the next while," said Michael Sprung, president at Sprung & Co. Investment Counsel.

"We're still facing some severe problems over in Europe that have got to be addressed and I think just as economic news continues to come out the markets are going to over react, both on the positive and negative side."

The Toronto stock market hit its lowest level of the year this week and is up only 2 percent for 2012.

"The (commodity) stocks have been lagging very badly. The gold stocks have been discounting about $1,000 gold and oil stocks have been discounting about $80 oil and ... some of the (base metals) just got ridiculously cheap," said John Kinsey, portfolio manager at Caldwell Securities.   Continued...

People walk by a sign displaying TSX information in Toronto, August 17, 2009. REUTERS/Mark Blinch