TSX rallies on gold miners, Bombardier

Tue Jun 12, 2012 5:14pm EDT
 
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By Jon Cook

TORONTO (Reuters) - Canadian stocks on Tuesday posted their first gain in four sessions as gold mining and energy shares rallied as well as a windfall deal for Bombardier Inc offset concerns about Europe's lingering debt crisis.

Stocks on world markets edged higher as battered shares attracted traders, but Spanish bond yields were near euro-era highs on doubts about Madrid's bank bailout and Sunday's election in Greece. <MKTS/GLOB>

"Overseas markets were up on views that more pro-growth programs will come to help the euro zone in its current mess," said Pat McHugh, Canadian equity strategist at Manulife Asset Management. "There's nothing crazy on the upside or crazy on the downside."

Eight of Canada's 10 main sectors finished higher. The heavily weighted materials and energy sectors, up 1.8 percent and 1.1 percent, respectively, were the session's top performers, climbing as gold and U.S. oil prices rebounded after Monday's sell-off. <GOL/> <O/R>

The most influential gainers included: Suncor Energy (SU.TO: Quote), up 2.3 percent to C$28.97; Potash Corp (POT.TO: Quote), which rose 2.2 percent to C$39.71; Talisman Energy TLM.TO, up 3.9 percent at C$11.23; Goldcorp Inc (G.TO: Quote), up 1.4 percent at C$40.46, and Eldorado Gold Corp (ELD.TO: Quote), which jumped 4 percent to C$12.48.

A mega jet deal involving Bombardier Inc (BBDb.TO: Quote) also helped keep Canadian stocks in positive territory. Bombardier shares jumped 6 percent to C$3.87 on Tuesday after news that the Canadian planemaker had won a $7.3 billion aircraft order with NetJets, a private jet-sharing company owned by Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Quote).

"Their business jet business was decent and this is just a cherry on top," said Paul Hand, managing director at RBC Capital Markets. "It's the commercial project that is the big question mark and has been the drag on the company."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 95.52 points, or 0.84percent, at 11,497.30. It briefly dipped into negative territory, hitting a session low at 11,385.50.   Continued...

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