TSX rally extends to eighth day on Barrick, Goldcorp

Thu Feb 13, 2014 5:10pm EST
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By John Tilak

TORONTO (Reuters) - Canada's main stock index rose on Thursday for an eighth straight session as gains in shares of Barrick Gold Corp (ABX.TO: Quote) and Goldcorp Inc (G.TO: Quote) helped overcome a wave of disappointing quarterly reports.

Investors also shrugged off data that showed a rise in the number of Americans filing new claims for unemployment benefits last week. Separate figures showed U.S. retail sales fell in January, missing expectations, as cold weather had an impact.

Sharp declines in Teck Resources Ltd TCKb.TO, Cenovus Energy Inc (CVE.TO: Quote), Great-West Lifeco's (GWO.TO: Quote) and Bombardier Inc (BBDb.TO: Quote) exerted downward pressure on the market.

In contrast, share advances in Barrick and Goldcorp, the world's two biggest gold miners, even though both reported quarterly losses, lifted broader sentiment.

The Toronto market hit a three-week high and ended the day within a point of a multi-year high.

"As we get closer to the 14,000 level, we should expect volatility to pick up and the market might meet some resistance," said Ben Jang, a portfolio manager who helps manage about C$2.5 billion in assets at Nicola Wealth Management. "With the pickup in volatility, investors should focus on good fundamental stories."

"The market hasn't distinguished value from growth," he added. "As valuations get stretched, the market will find stability in lower-multiple names."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 101.16 points, or 0.73 percent, at 14,001.65. The Canadian benchmark index has outperformed the S&P 500 .SPX so far this year.   Continued...

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