TSX snaps five-day losing streak as industrials, telecoms gain

Mon Apr 8, 2013 5:22pm EDT
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By John Tilak

TORONTO (Reuters) - Canada's main stock index snapped a five-day losing streak on Monday, rising with world stock markets on aggressive action by Japan's central bank to stimulate the economy and showing strength in the industrials and telecoms sectors, while gold miners declined.

The gold producers fell as the appetite for equities and comments by billionaire financier George Soros that gold has been destroyed as a safe-haven asset pushed bullion prices lower. <GOL/>

The rise in industrials and telecoms helped the index recover from its worst week in about 10 months. The benchmark index fell 3.3 percent last week as a slew of negative economic news weighed on investors, particularly data on Friday that showed Canada posted its worst monthly jobs loss in more than four years in March.

The Bank of Japan conducted its first government bond-buying operation on Monday since it announced new policy easing steps last week. <MKTS/GLOB>

"The aggressive monetary policies that the Bank of Japan released last week are definitely helping risk assets recover from last week's pullback," said Youssef Zohny, portfolio manager at Stenner Investment Partners, a unit of Richardson GMP.

"(But) there's some frustration for Canadian investors that the Canadian market has underperformed relative to our neighbors in the south," he added. "The TSX needs to see some firming of commodities."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 12.71 points, or 0.10 percent, at 12,344.56. Six of the 10 main sectors on the index were higher.

The index is down 0.7 percent since the start of the year, while the S&P 500 has gained about 9 percent in the same period.   Continued...

A Bay Street sign, the main street in the financial district is seen in Toronto, January 28, 2013. REUTERS/Mark Blinch