TSX closes higher as CP Rail, gold stocks climb

Tue Jan 29, 2013 4:44pm EST
 

By John Tilak

TORONTO (Reuters) - Canada's main stock index climbed on Tuesday, lifted by Canadian Pacific Railway Ltd's profit outlook and a rally in gold shares, which rose with the price of the precious metal as investors speculated on U.S. Fed actions.

Canadian Pacific (CP.TO: Quote) said its aggressive efficiency push would pay off in a 40 percent increase in earnings this year, sending its shares to an all-time high. The stock climbed 3.1 percent to C$116 .22.

Gold rose on short-covering and expected continuation of loose U.S. monetary policies. <GOL/>

The gains were, however, kept in check by a fall in financials and a 3.4 percent decline in Research In Motion Ltd RIM.TO shares, triggered by investor caution ahead of the BlackBerry 10 launch on Wednesday.

The market pullback follows a recent rally in the stock in the run-up to the launch.

"Tomorrow is the big day. But it will be sometime before it's discernible whether or not it is in fact the great success they're hoping for," said Michael Sprung, president of Sprung Investment Management.

"It's a coin toss. At the end of the day, no one can predict the success of BB10. It's a speculative stock," he added.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 14.65 points, or 0.11 percent, at 12,830.56. Seven of the 10 main sectors on the index advanced.   Continued...

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