CANADA STOCKS-TSX rallies as U.S. jobs data lifts commodities

Fri Aug 3, 2012 4:46pm EDT
 
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* TSX ends up 156.09 pts, or 1.4 pct, at 11,662.59
    * Index posts biggest one-day gain in a month
    * Energy, financial shares lead gains
    * Strong U.S. jobs report boosts risk assets

    By Jon Cook
    TORONTO, Aug 3 (Reuters) - Canada's main stock index had its
largest one-day gain in a month on Friday as financial and
resource shares were boosted after the U.S. economy added more
jobs than expected in July, easing concerns about the health of
the world's largest economy.
    The data showed U.S. employers hired 163,000 workers, the
most in five months and above expectations calling for an
increase of 100,000 jobs. 
    The strong U.S. number came at the same time as corporate
earnings "continued the pattern of being pretty decent," said
Bob Gorman chief portfolio strategist at TD Waterhouse.
    "This is one of the few days in which you had both oars in
the water," added Gorman.
    The news boosted commodity markets as the U.S. dollar fell,
making dollar-denominated commodities cheaper for holders of
other currencies. The 19-commodity Thomson Reuters-Jefferies CRB
index had its biggest gain in a month. 
    Most of Canada's 10 main sectors finished higher. Leading
the way was the powerful energy complex, which rose 2.5 percent
as U.S. oil prices jumped 5 percent. 
    Suncor Energy, Canada's largest oil producer, rose
3.6 percent to C$31.63, while Canadian Natural Resources
 jumped 4.4 percent to C$27.95 and Cenovus Energy
 was up 2.9 percent to C$31.39.
    Financials were also stronger, rising 1.2 percent on the
prospect Canada's largest trading partner was stabilizing and
possibly shaking off its doldrums.
    The biggest mover was Royal Bank of Canada, which
climbed 1.4 percent to C$51.60, while Toronto-Dominion Bank
 was up 1.3 percent at C$79 and life insurer Manulife
Financial Corp spiked 4 percent to C$10.77.
    The Toronto Stock Exchange's S&P/TSX composite index
 finished up 156.09 points, or 1.4 percent, at
11,662.59. It was the index's biggest single-day percentage gain
since July 3 when it spiked 2.2 percent due to positive
developments in the euro zone debt crisis.
    The rise ended a four-day slide, but the TSX was still down
0.9 percent for the week.
    Friday's move in equities was also helped as investors took
a second look at Thursday's statement by European Central Bank
President Mario Draghi and concluded that help was on the way.
 
    "The ECB did exactly what they needed to do, which was to
remind the market that they will prevent an event," said Michael
A. Gayed, chief investment strategist at Pension Partners LLC.
"What has held money back from taking risk is the fear of a 2008
repeat."
    The heavily weighted materials group, which includes miners,
was up 1.2 percent as copper rebounded after hitting a six-week
low on Thursday when the ECB held interest rates and announced
no new stimulus plans. 
    The most influential gainers included Ivanhoe Mines Ltd
, which jumped more than 7 percent to C$8.60 after
China-owned miner Chalco said it will extend its offer
for a majority stake in Mongolia-focused coal miner SouthGobi
Resources Ltd. Ivanhoe is South Gobi's majority
shareholder. 
    Barrick Gold shares were up 1.2 percent to C$32.83
and Goldcorp climbed 1 percent to C$36.09.
    In Canadian earnings news, shares of Telus Corp rose
1.2 percent to C$63.17 after it said wireless revenue in the
second quarter climbed 7 percent from the year-before period as
both the total number of subscribers and their average monthly
bills rose. 
    Shares of Agrium Inc edged up 0.7 percent to
C$95.30 on Friday, a day after North America's biggest retail
supplier of farm products and services reported record high
second quarter profit.