CANADA STOCKS-Energy, mining stocks lead TSX higher

Tue Sep 11, 2012 10:48am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX up 47.91 points, or 0.39 percent, to 12,263.65
    * Resource companies lead gains as commodity prices rise
    * Banks are main drag ahead of Fed, German court ruling

    By Alastair Sharp
    TORONTO, Sept 11 (Reuters) - Canada's main stock index moved
higher o n Tuesday, led by heavyweight resource stocks on the
back of commodity price strength, with investors hopeful the
U.S. Federal Reserve will undertake more monetary easing this
    The energy and materials sectors - which together account
for more than 40 percent the index - were both higher as oil
held near $115 and gold traded at six-month highs.  
    "These are two sectors that have lagged," said Andrew Pyle,
a wealth advisor at ScotiaMcLeod. "Much of what we're seeing now
is a catch-up."
    Both sectors are lower than they were at the start of the
year, while the overall index has notched small gains.
    The biggest positive influences on the index on Tuesday
included Canadian Natural Resources Ltd, which added
1.2 percent to C$32, and Suncor Energy Inc, which gained
0.7 percent to C$32.77.
    But investors were still cautious ahead of a German court
ruling this week on the legality of the euro zone's bailout
    "This is still a market that is in trepidation mode," Pyle
said. "It's a market with no conviction either way."  
    By 10:15 a.m. (1415 GMT) the Toronto Stock Exchange's
S&P/TSX composite index had gained 47.91 points, or
0.39 percent, to 12,263.65.
    Banks and other financial stocks were among the heaviest
weights on the index's rise on Tuesday.
    The resource-rich index was boosted to four-month highs late
last week after China said it planned a major spending spree and
the European Central Bank unveiled a possibly unlimited
bond-buying program.
    It pared some of those gains on Monday as investors awaited
the Fed meeting and the German court ruling on the ECB plan.
    Legal experts believe Germany's Constitutional Court will
approve the euro zone's bailout fund, while possibly imposing
tough conditions that would limit Berlin's flexibility on future