TSX gains as resource, bank stocks jump after jobs data

Fri Jul 8, 2016 4:36pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index jumped on Friday as investors cheered a blockbuster U.S. jobs report and pushed up resource stocks, railways, industrials and banks.

The move was more subdued than that seen on Wall Street, as Canada's own job growth stalled and fewer people sought work, but attention centered on the number from the much larger economy of the United States, Canada's main trading partner.

The Toronto Stock Exchange's S&P/TSX composite index's .GSPTSE gains were broad and significant, with five of its 10 main sectors rising more than 1 percent, including its heavyweight energy and materials groups.

The index closed up 125.38 points, or 0.89 percent, at 14,259.84. It gained 1.4 percent on the week.

"This is the flip side to last month when the market was unexpectedly disappointed with the 38,000 jobs," said Irwin Michael, portfolio manager at ABC Funds, referring to the U.S. nonfarm payroll print for May, which was revised down to 11,000.

"This month people were astounded by the 287,000 jobs," he added. "That completely surprised the marketplace and that's what drove everything.""

In Canada there were nearly four gainers for every decliner, with industrials rising 1.5 percent, the energy group up 1.4 percent, and financials gaining 0.6 percent.

The most influential gainers included Canadian National Railway Co (CNR.TO: Quote), which rose 1.7 percent to C$78.11, and its rival Canadian Pacific Ltd (CP.TO: Quote), which advanced 2.6 percent to C$173.90.   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch