TSX climbs to one-week high as mining stocks surge

Wed Oct 31, 2012 5:13pm EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index rose on Wednesday, as stronger commodity prices drove materials stocks higher and Research in Motion RIM.TO charged ahead after it said it was on track to launch its new BlackBerry 10 next year.

The materials group rose 1.2 percent as gold prices reached their highest in a week <GOL/>. Copper prices also strengthened.

Centerra Gold (CG.TO: Quote) charged ahead 6.4 percent to C$11.33, while Yamana Gold (YRI.TO: Quote) surged 3.5 percent to C$20.17.

Also boosting interest in the sector was Potash Corp (POT.TO: Quote), which climbed 0.5 percent to C$40.15, after the fertilizer company confirmed its interest in increasing its stake in Israel Chemical Ltd.

"People are certainly feeling more confident in the resource sector," said Paul Harris, portfolio manager at Avenue Investment Management. "Canadian stocks have been beaten up this year. You're seeing some pickup of that."

Volumes on Toronto's stock market picked up as U.S. equity markets resumed trading after a two-day closure due to storm Sandy. .N

A total of 332.9 million shares were traded on the Canadian bourse, nearly double the 178.3 million shares traded on Tuesday when U.S. markets were closed.

"It's a fairly positive tone here. There is nothing acting as a dramatic catalyst," said Bob Gorman, chief portfolio strategist at TD Waterhouse.   Continued...

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