CANADA STOCKS-TSX keeps rally alive on gold miners

Fri May 25, 2012 5:05pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX ends up 10.40 pts, or 0.1 pct, at 11,576.47
    * Energy, gold miners lead gains
    * Financial shares fall on Spain, Greek worries

    By Jon Cook	
    TORONTO, May 25 (Reuters) - Canadian stocks finished in
positive territory for the fourth-straight session on Friday, as
gains in resource shares offset financial sector losses on fears
of a Greek exit from the euro zone and Spanish debt problems.	
    Seven of Canada's 10 main sectors were higher, fueled by
resources gains as gold and oil prices rebounded from lows
earlier in the week.  	
    Heavily-weighted materials group, which includes gold
miners, rose 0.8 percent and the energy sector climbed 0.9
    The most influential gainers included Barrick Gold,
up 1.8 percent to C$41.24, Yamana Gold, which climbed
3.2 percent to C$15.30, Goldcorp Inc, up 1.2 percent to
C$38.84, Suncor Energy, up 1.3 percent at C$28.87,
Canadian Natural Resources, which gained 0.9 percent to
C$31.70, and Encana Corp, finishing 1.6 percent higher
at C$21.14.	
    "The market is oversold enough that you could see a summer
rally," said Paul Hand, managing director at RBC Capital
    Hand added that thin trade ahead of the U.S. holiday long
weekend may have exaggerated moves.	
    "There is a tendency statistically for markets to close up
on the Fridays before long weekends in the U.S. and that may
keep us buoyant a little bit," he said.	
    The Toronto Stock Exchange's S&P/TSX composite index
 finished up 1 0.40 points, or 0.1 percent, at
11,576.47. It ended the week up 2.6 percent, its first weekly
gain this month.	
    However the rally could be fleeting with euro zone jitters
still weighing on markets. On Friday, a plea from Spain's
wealthiest autonomous region, Catalonia, for help from the
central government to refinance its debt this year was the
latest news to hit the euro, which was on track for its worst
weekly showing in five months. 	
    "Europe has been in the headlines for such a long time that
we're just getting desensitized," said Levente Mady, market
strategist at Union Securities in Vancouver.	
    Worries were compounded after Belgium's deputy prime
minister, Didier Reynders, issued a warning over Greece, saying
it would be a "grave professional error" if central banks and
companies were not preparing for a Greek exit from the euro
    Greek fears and mixed second-quarter earnings results from
Canada's top banks sent financial issues down 1 percent.	
    Shares of Royal Bank of Canada tumbled for the
second straight day, falling 2 percent to C$50.35. Canada's
largest bank has shed almost 5 percent since it reported a 7
percent decline in quarterly earnings on Thursday.
    Not even a good earnings result spared Toronto-Dominion Bank
, Canada's No. 2 bank, whose shares slid 1 percent to
C$78.22 a day after it reported a 20 percent rise in quarterly
    Bank of Nova Scotia, which reports earnings next
week, fell 0.9 percent to C$50.95.	
    All of Canada's top six banks' share prices are now trading
below year-ago levels as the earnings growth environment has
    Mady said the downtrend could continue over the next
    "Heading into the summer, with negative seasonality, the
path of least resistance is down."