Earnings boost TSX in second straight weekly gain

Fri Apr 27, 2012 4:35pm EDT
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By Claire Sibonney

TORONTO (Reuters) - Canada's main stock index climbed on Friday, hitting its highest level since early April and racking up its second straight weekly gain after solid North American earnings offset disappointing U.S. economic data.

The index was up for the third straight day, helped by all three powerhouse sectors - materials, energy and financials.

Energy shares, up 1 percent, led the gainers ahead of some big earnings in the group next week. Canadian Natural Resources (CNQ.TO: Quote), up 2.1 percent to C$33.31, was the most influential advancer. The oil and natural gas producer reports on Thursday.

"This may reflect some sort of positioning by investors ahead of those earnings," said Elvis Picardo, strategist and vice-president of research at Global Securities in Vancouver.

"The energy group has underperformed quite badly, it's underperformed the TSX over the past three months so there may be some optimism that the numbers may come in better than current estimates."

Gold miner Agnico Eagle (AEM.TO: Quote) was also a key name on the upside, soaring nearly 10 percent to C$38.66 after reporting a 73 percent increase in its quarterly profit late on Thursday, driven largely by gains in the price of bullion.

"The golds are a little bit better ... Agnico Eagle had pretty good numbers. Goldcorp numbers yesterday were a little weak but I think there's some bottom fishing coming into these names here," said Bruce Latimer, trader at Dundee Securities.

Goldcorp (G.TO: Quote) was up 0.9 percent at C$38.38.   Continued...

People attend a market open ceremony for the Toronto Stock Exchange at the TSX Broadcast Centre in Toronto June 20, 2008. REUTERS/Mark Blinch