CANADA STOCKS-TSX buoyed by upbeat U.S. manufacturing data

Mon Oct 1, 2012 5:22pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX ends up 52.73 points, or 0.4 pct, at 12,370.19
    * All 10 sectors stronger

    By Claire Sibonney
    TORONTO, Oct 1 (Reuters) - Canada's main stock index rose
moderately on Monday, after touching a one-week high, as
optimism over better-than-expected U.S. data was tempered by
signs of economic weakness in Asia and evidence of a new
recession in the euro zone. 
    The gain on the first day of the final quarter of 2012 comes
after stocks notched a strong third quarter, helped by
stimulative measures from the U.S. Federal Reserve and the
European Central Bank.
    The TSX's heavily weighted resource sectors were all higher
on Monday as commodity prices climbed. Energy shares advanced
1.0 percent as U.S. crude oil reversed early losses while
materials shares, including miners, were up 0.5 percent as the
price of gold neared a one-year high. 
    "We saw three different data sets out of manufacturing today
and they kind of paint two different stories," said Youssef
Zohny, portfolio manager at Stenner Investment Partners, part of
Richardson GMP, in Vancouver.
    He noted the market's focus was shifting from central bank
action to economic data and upcoming earnings reports for the
third quarter.
    Data showed U.S. manufacturing grew slightly last month for
the first time since May, but euro zone factories suffered their
worst quarter since early 2009, suggesting the region may
struggle to avoid recession. 
    Factory activity in China also contracted, suggesting the
world's No. 2 economy lost momentum for a seventh consecutive
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 52.73 points, or 0.4 percent, at 12,370.19.
All 10 sectors were stronger, including financials, up 0.1
    Among the top gainers, Canadian Natural Resources 
was up 2 percent to C$30.95, Encana Corp jumped 4
percent to C$22.39, and Suncor Energy added 0.9 percent
to C$32.64. 
     The TSX finished the third quarter up more than 6 percent
on Friday, as energy companies and miners benefited from a
strong showing in crude and bullion prices.
    "It's the start of the month so there's money that needs to 
be employed," said Francois Bourdon, associate chief investment
officer at Fiera Capital Corp in Montreal. 
    In company news, Magna International Inc, one of the
world's biggest auto parts manufacturers, rose 1.8 percent to
C$43.27 after it said it will buy Germany-based Ixetic for about
308 million euros to expand its engine and transmission pumps
    Keyera Corp was up 1.8 percent to C$48.50 after
announcing plans to invest C$210 million to boost recoveries of
ethane and other high-margin natural gas liquids at the Rimbey
gas plant in west central Alberta. 
    Agrium rose 1.7 percent to C$103.69. U.S. hedge
fund Jana Partners said the Canadian fertilizer company's share
price could rise about $50, or 50 percent, if the company took
steps to improve its business.