TSX closes at 1-month high on ECB hopes
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index closed at its highest level in more than a month on Tuesday, boosted by investor hopes for more central bank action in Europe and a bounce in energy and mining shares as commodity prices rose.
Toronto stocks followed global markets, which have enjoyed a strong run so far this week on investor expectations the European Central Bank will buy bonds to ease the pressure on Spain and Italy, albeit under strict conditions that have yet to be fully worked out. <MKTS/GLOB>
"Given that valuations remain very reasonable, both solid fundamentals in conjunction with some decent macro-economic news continue to see the market going higher," said Bob Gorman, chief portfolio strategist at TD Waterhouse.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 200.91 points, or 1.7 percent, at 11,863.50. The second straight session of solid gains took the index to its highest close since July 4.
All of Canada's 10 main sectors were higher. The heavily-weighted energy group led gains, climbing as oil prices rallied on supply worries. <O/R>
The sharp rise added momentum to a rally that began on Friday after positive U.S. payroll data fueled broad commodity price gains.
U.S. stocks rose further while Canadian exchanges were closed on Monday for a public holiday.
The biggest gainers on Tuesday included Canadian Natural Resources (CNQ.TO: Quote), which added 7.3 percent to C$30, Suncor Energy (SU.TO: Quote), which gained 1.9 percent to C$32.23 and Cenovus Energy (CVE.TO: Quote), which jumped 4.5 percent to C$32.79. Continued...