CANADA STOCKS-TSX gains on banks, energy issues

Tue Jun 5, 2012 11:03am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX up 123.60 points at 11,459.37
    * Nine of 10 subsectors higher, telecoms off slightly
    * U.S. economy's services data helps market mood
    * Miranda soars 62 pct on acquisition news

    By Jennifer Kwan	
    TORONTO, June 5 (Reuters) - Canadian stocks were higher on
Tuesday, recovering from two sessions of losses on strength in
bank and energy issues and supported by better-than-expected
U.S. services sector data that eased worries about slowing
global growth.	
    The pace of growth in the U.S. services sector picked up in
May as a gauge of new orders improved, according to an industry
report released on Tuesday. The Institute for Supply
Management's services index edged up to 53.7 from 53.5 in April,
a touch above economists' forecasts for it to hold steady.
    The data helped ease investor worries after a previous
string of weaker North American data, which had battered market
confidence amid a deepening euro zone crisis.	
    The key energy, financial and materials sectors led
Toronto's main stock index higher. Rising shares included
Toronto-Dominion Bank, up 1.8 percent at C$77.85, and
Royal Bank of Canada, which climbed 1.4 percent to
    Suncor Energy added 2.4 percent at C$28.36 and
Encana gained 4.3 percent at C$20.52.	
    But investors cautiously awaited developments from emergency
talks among finance ministers of the Group of Seven
industrialized nations to tackle the deepening euro zone crisis.
    "Until we get some concrete evidence they're coming up with
a solution, markets will be range bound, and we're going to have
each and every day lots of volatility," Barry Schwartz,
portfolio manager at Baskin Financial Services, said of the
broader euro-zone debt crisis.	
    Still, Spain said on Tuesday that credit markets were
closing to the euro zone's fourth biggest economy.
    At around 10:40 a.m. (1440 GMT), the Toronto Stock
Exchange's S&P/TSX composite index was up 123.60
points, or 1.1 percent, at 11,459.37. Nine of its 10 main
sectors were higher. The telecoms sector sagged 0.05 percent.	
    Cable and networking product manufacturer Belden Inc 
said on Tuesday it would acquire Canadian rival Miranda
Technologies Inc for C$377 million to increase its
presence in niche markets. Miranda, the most heavily traded
stock on the TSX, was up 62 percent at C$16.87.	
    Canadian Pacific Railway, off 0.2 percent at
C$72.83, said Paul Haggis has been elected chairman, three weeks
after a bitter proxy battle with New York activist shareholder
William Ackman led to top level resignations at Canada's
second-biggest railroad.