Banks and miners lead TSX to sixth straight gain

Tue Oct 22, 2013 5:04pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index gained for a sixth straight session on Tuesday, led by banks and mining stocks after weak U.S. jobs data bolstered expectations that the U.S. Federal Reserve will stick with its monetary stimulus program for a while longer.

Optimism about the economic outlook in China, a major buyer of many of Canada's raw materials, also lifted mining companies. Among them, Teck Resources Ltd TCKb.TO jumped 4.1 percent to C$29.72.

"The numbers out of China seem to be better now and that seems to be having an impact especially on the materials area," said John Kinsey, portfolio manager at Caldwell Securities.

He pointed to signs that Australian iron ore and coal companies are ramping up production and to improving data out of Europe, a key market for Chinese exports, as further reason to believe the massive Chinese economy might be stabilizing.

Two of the world's biggest gold miners gave the index the biggest boost, with Goldcorp Inc (G.TO: Quote) adding 4.9 percent to C$26.99, and Barrick Gold Corp (ABX.TO: Quote) gaining 4.8 percent to hit a one-month high of C$20.47.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 61.53 points, or 0.47 percent, at 13,248.06. It has gained almost 3 percent since October 11, and is at its highest level since July 2011.

U.S. employers added 148,000 positions last month, the Labor Department said, below expectations of 180,000. While the job count for August was revised higher and the unemployment rate ticked down to 7.2 percent from 7.3 percent, employment gains in July were revised lower and were the weakest since June 2012.

While the soft jobs number suggests demand in Canada's largest export market will remain weak, the prospect of a looser-for-longer U.S. monetary policy has encouraged Canadian investors.   Continued...

People walk past an electronic board displaying the midday TSX index in Toronto in this February 16, 2011 file photo. REUTERS/Mark Blinch/Files