CANADA STOCKS-TSX climbs to one-week high as mining stocks surge

Wed Oct 31, 2012 5:06pm EDT
 
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* TSX rises 45.86 points, or 0.37 percent, to 12,422.91
    * Materials and tech sectors lead gains
    * Potash, RIM stronger


    By John Tilak
    TORONTO, Oct 31 (Reuters) - Canada's main stock index rose
on Wednesday, as stronger commodity prices drove materials
stocks higher and Research in Motion charged ahead
after it said it was on track to launch its new BlackBerry 10
next year.
    The materials group rose 1.2 percent as gold prices reached
their highest in a week. Copper prices also strengthened.
    Centerra Gold charged ahead 6.4 percent to C$11.33,
while Yamana Gold surged 3.5 percent to C$20.17.
    Also boosting interest in the sector was Potash Corp
, which climbed 0.5 percent to C$40.15, after the
fertilizer company confirmed its interest in increasing its
stake in Israel Chemical Ltd. 
    "People are certainly feeling more confident in the resource
sector," said Paul Harris, portfolio manager at Avenue
Investment Management. "Canadian stocks have been beaten up this
year. You're seeing some pickup of that."    
     Volumes on Toronto's stock market picked up as U.S. equity
markets resumed trading after a two-day closure due to storm
Sandy. 
    A total of 332.9 million shares were traded on the Canadian
bourse, nearly double the 178.3 million shares traded on Tuesday
 when U.S. markets were closed.
    "It's a fairly positive tone here. There is nothing acting
as a dramatic catalyst," said Bob Gorman, chief portfolio
strategist at TD Waterhouse.
    The Toronto Stock Exchange's S&P/TSX composite index
 ended the session up 45.86 points, or 0.37 percent, at
12,422.91.
    The index rose as high as 12,462.26, its strongest level in
more than a week. Eight of the ten TSX subgroups ended positive.
    RIM, once the largest stock on the exchange, rose 3.7
percent to C$7.88, helping drive the TSX info tech sector up 1.4
percent.
    The company said it had started carrier testing on its new
line of BlackBerry 10 devices and said it was on track to launch
the new smartphones in the first quarter of 2013.
 
    Financial stocks climbed 0.3 percent, led by property and
casualty insurer Intact Financial, which rose 2.6
percent to C$61.25, and life insurer Great-West Lifeco,
which gained 1.5 percent to C$23.00.
    "There's a feeling of confidence. It isn't going to go
overboard. It is managed confidence that we're seeing is
reflected in the market," said Fred Ketchen, director of equity
trading at ScotiaMcLeod.
    The energy sector was one of the few areas of weakness, down
0.2 percent, as Encana Corp, Canada's largest gas
producer, fell 2.8 percent to C$22.50. 
    Cenovus Energy Inc, Canada's No. 2 independent oil
producer, rose 1.3 percent to C$35.23 after SocGen upgraded its
recommendation to "buy" from "hold". 
    Brent crude rose to about $109 a barrel, though the gains
were limited by concerns over demand impact on the United
States.