TSX closes near 18-month high; gold, bank stocks up

Tue Jan 22, 2013 5:24pm EST
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index closed near an 18-month high on Tuesday, led by a rise in gold stocks, which tracked a rally in the precious metal after the Bank of Japan pledged to launch an aggressive stimulus plan.

The gains were restrained by Canadian National Railway Co CNR.TO slipping 1 percent to C$93.77 after the country's biggest rail carrier gave a profit outlook for 2013 that fell short of analysts' expectations.

Investors have been shifting their attention between macroeconomic concerns and corporate results, and expectations have been muted for the resource sector this quarter. <.TO/O>

But markets received support from the Bank of Japan announcement that it would switch to an open-ended commitment to buying assets next year and double its inflation target to 2 percent. <MKTS/GLOB>

"Overall, the underlying sentiment is quite positive. It looks like the TSX is on track to test 13,000 points," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

However, the near 18-month high the TSX is at pales in comparison with the five-year high levels the S&P 500 has been touching, he said.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 30.38 points, or 0.24 percent, at 12,824.63, its highest since August 2, 2011.

Five of the 10 main sectors on the index were higher.   Continued...

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