CANADA STOCKS-TSX rallies more than 1 pct, resources lead way

Tue Oct 16, 2012 11:53am EDT
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* TSX up 137.85 points, or 1.13 percent, at 12,367.81
    * All 10 main index sectors rise
    * Energy and mining stocks lead rally

    By Solarina Ho
    TORONTO, Oct 16 (Reuters) - Canada's main stock index
rallied more than 1 percent on Tuesday with market sentiment
buoyed by stronger-than-expected U.S. earnings and firmer
commodity prices.
    Mining and energy stocks were up 1.75 percent and 1.18
percent, respectively, as gold and copper prices came off
one-month lows and oil prices edged higher. The index's
materials group, home to miners, was up 1.73 percent.
    Barrick Gold was the biggest index mover, up 2.05
percent at C$38.76, while Suncor Energy climbed 1.3
percent to C$32.80. Miner Goldcorp gained 1.57 percent to
    Royal Bank of Canada and Toronto-Dominion Bank
 completed the top five index movers, with RBC up 0.98
percent at C$57.80 and TD advancing 1.02 percent to C$82.28. The
overall financial group was up 0.89 percent.
    The financial, energy and materials groups make up roughly
three quarters of the index.
    The market tracked global shares, which rose for a second
day as better-than-expected earnings from U.S. corporate
bellwethers Johnson & Johnson and Goldman Sachs Group
 helped alleviate some concerns about a slowing global
    "Things have just been a bit more buoyant. The mood seems to
be confidence is improving, generally," said
Douglas Davis, chief executive at Davis-Rea.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 137.85 points, or 1.13 percent, at 12,367.81.
All 10 key sectors of the index climbed.
    Data on Tuesday showed Canadian factory sales bounced back
in August with an unexpected 1.5 percent jump after a two-month
slump and that foreign investors increased their purchases of
Canadian securities in August to C$6.90 billion ($7.04 billion)
from C$6.67 billion in the previous month. 
    "Recently some of the data that's come out has been a bit
more supportive of the recovery as opposed to data that makes
you question whether or not we're recovering at the rate that
we'd hope," said Gareth Watson, vice president at Richardson
    In corporate news, Loblaw Cos Ltd, Canada's largest
grocer, said on Tuesday that it planned to cut about 700 head
office and administrative jobs over the next three weeks in a
move aimed at reducing costs. Its shares climbed 2.33 percent to