TSX halts 5-day skid, underpinned by China, Spain

Thu Sep 27, 2012 5:32pm EDT
 
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By Solarina Ho

TORONTO (Reuters) - Canada's main stock index jumped almost 1 percent on Thursday, breaking a five-day fall as investors bought back in to heavyweight resource and banking stocks after Spain displayed fiscal discipline and China's central bank splashed cash.

Nine of the index's 10 main sectors moved higher, led by the heavyweight materials, energy and financial sectors, which together account for more than three-quarters of the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE.

The index finished up 105.99 points, or 0.87 percent, at 12,338.85, as stronger oil, gold and copper prices boosted energy and mining firms.

The materials group index, home to mining companies, jumped 1.87 percent. An index of energy stocks gained 1.21 percent, while an index of financial stocks rose 0.79 percent.

Goldcorp Inc (G.TO: Quote) led the rally as the biggest index mover and was up 2.55 percent to close at C$45.44. The miner was followed by the Bank of Nova Scotia (BNS.TO: Quote), which advanced 1.24 percent, to end at C$54.75, and Royal Bank of Canada (RY.TO: Quote), which was up 0.93 percent at C$56.69.

Gold and copper prices climbed higher on hopes of additional monetary stimulus from China, while fresh austerity steps in Spain renewed fears about the euro zone. <GOL/> <MET/L>

Spain announced a detailed timetable for economic reforms and a tough 2013 budget based mostly on spending cuts seen by many as an effort to pre-empt the likely conditions of an international bailout.

"This is one small pebble in a very large pile of rocks, but it is a glimmer of hope that some of the southern European countries can take the necessary steps in order to start reducing debt levels, or at a minimum, stop increasing debt," said Craig Fehr, Canadian market strategist at Edward Jones in St. Louis.   Continued...

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