TSX up as banks, commodity issues bounce

Tue Jun 5, 2012 5:04pm EDT
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By Jennifer Kwan

TORONTO (Reuters) - Canadian stocks ended higher on Tuesday on strength in the bigger bank and commodity-linked sectors as better-than-expected U.S. services sector data eased investor worries about slowing global growth.

The pace of growth in the U.S. services sector picked up in May as a gauge of new orders improved, according to an industry report released on Tuesday. The Institute for Supply Management's services index edged up to 53.7 from 53.5 in April, a touch above economists' forecasts for it to hold steady.

The data helped calm market jitters after a previous string of weaker North American data, which had battered market confidence amid a deepening euro zone crisis.

The key energy, financial, materials and energy sectors led Toronto's main stock index higher after skidding 7.4 percent, 6.8 percent and nearly 11 percent, respectively, in May.

Rising shares included Toronto-Dominion Bank (TD.TO: Quote), up 1.5 percent at C$77.68, and Royal Bank of Canada (RY.TO: Quote), which climbed 1.6 percent to C$50.38.

Suncor Energy (SU.TO: Quote) added 2.1 percent at C$28.30 and Encana (ECA.TO: Quote) gained 6.9 percent at C$21.02.

"Partly we had some good economic news. The ISM was a bit stronger than expected. We also just became oversold. There's a point in time when people are willing to come in," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier, of the market rally.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended the day up 171.94 points, or 1.5 percent, at 11,507.71. All of its 10 main sectors were higher.   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch