CANADA STOCKS-TSX lifted by robust jobs data; resources lead way

Fri Dec 7, 2012 10:59am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX up 24.92 points, or 0.21 percent, at 12,176.05
    * Enbridge up 2.2 pct after proposing pipeline expansion

    By Alastair Sharp
    TORONTO, Dec 7 (Reuters) - Economically sensitive resource
shares led Canada's main stock index higher on Friday after data
showed unexpectedly strong growth in employment in both the
United States and Canada in November.
    In Canada, a higher-than-expected 59,300 jobs were added,
with the bulk of hiring coming in full-time positions and in the
private sector, Statistics Canada said. In the
United States, Canada's main trading partner, a bumper 146,000
jobs were created last month, though a drop in the unemployment
rate suggested some people gave up the search for work.
 
    "Getting the two reports today is really a pointed reminder
to investors that while there is a tremendous amount of
uncertainty in Washington, the economy continues to chug along,"
said Cr a ig Fehr, Canadian market strategist at Edward Jones in
St. Louis, Missouri.
    At 10:06 a.m. (1506 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 24.92 points, or 0.21
percent, at 12,176.05. 
    Global markets have in recent weeks been buffeted by concern
over setbacks in negotiations to fix the U.S. "fiscal cliff"
budget crisis, which, if not resolved, could push the country
back into recession.  
    "It's not lights out but it is supportive of stronger market
performance over time," Fehr said of the employment data. "That
being said, it would be naive to assume that the fiscal cliff
drama isn't going to continue to be the primary, very
short-term, market driver."    
    Companies most attuned to economic signals, including miners
and energy companies, saw the biggest gains on Friday. Barrick
Gold Corp was up 1 percent at C$33.44, and Goldcorp Inc
 rose 0.9 percent to C$36.79 as bullion prices rebounded.
 
    Pipeline operator Enbridge Inc gained 2.2 percent
to C$40.86 after proposing a C$6.2 billion expansion of its oil
pipeline system, aimed at moving surging volumes of light crude
from Western Canada and the North Dakota Bakken to refineries in
the eastern part of the continent and U.S. Midwest.
 
    Crescent Point Energy Corp, which produces shale
light oil in that region and would benefit from improved access
to markets, gained 1.8 percent to C$36.82.  
    Glencore International Plc received approval from
China's Ministry of Commerce for its C$6.1 billion acquisition
of Canadian grain handler Viterra Inc, clearing another
regulatory hurdle for the long-delayed deal. 
    Investors are watching for progress on two other
acquisitions of Canadian resource companies as a deadline
approaches for Ottawa to either approve or reject bids from
China's CNOOC Ltd for Nexen Inc and
Malaysia's Petronas for Progress Energy Resources Corp.