TSX extends 2-year high with broad gains; up 1.9 pct on week

Sat Oct 19, 2013 8:49am EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index capped a stellar week with further gains on Friday, extending a two-year peak as industrial and resource stocks gained on data showing the Chinese economy, the world's second-biggest, grew at its fastest pace this year.

Adding to the rosy view for stocks, investors are betting that the U.S. Federal Reserve will delay trimming its stimulus measures due to the economic damage inflicted by the partial U.S. government shutdown that ended on Thursday.

"A lot of Canadian money managers have been sitting on their hands watching what's been happening south of the border and, that having been sorted out, at least in the short term, they are back in the market," said David Cockfield, managing director and portfolio manager at Northland Wealth Management.

"I think this trade deal is encouraging people as well," he added, referring to the signing of a multibillion-dollar trade pact between Canada and the European Union.

The deal will make Canada the only Group of 8 country to have preferential access to the world's two largest markets, the EU and the United States, home to about 800 million people.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 99.73 points, or 0.77 percent, at 13,136.09, its highest level since July 2011. It gained 1.9 percent on the week, its best weekly performance since July.

Air Canada ACb.TO rose 4.6 percent to $5.19. The airline, which reached a deal to expand its main hub in Toronto, has risen sharply in recent months amid a major expansion push and solid traffic growth.

Investors pushed aircraft maker Bombardier BBDb.TO up 1.8 percent to C$5.08 after it said a Chinese company may double its total order of new jetliners.   Continued...

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