CANADA STOCKS-TSX posts year's biggest jump on upbeat China data

Tue Apr 9, 2013 5:12pm EDT
 
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* TSX rises 139.49 points, or 1.13 percent, at 12,484.05
    * Nine of 10 main sectors advance
    * Gold shares jump 3.4 percent
    * Agrium falls as boardroom battle ends

    By John Tilak
    TORONTO, April 9 (Reuters) - Canada's main stock index
recorded its biggest one-day percentage jump in more than four
months on Tuesday as positive economic data from China fueled
hopes for a global economic recovery and drove gains in the
material and energy sectors. 
    The sharpest reaction came from gold producers, which were
buoyed by a rise in the price of bullion and jumped 3.4 percent.
    China's annual consumer inflation cooled in March as food
prices eased from nine-month highs and producer price deflation
deepened. 
    The data further lifted other commodity prices such as oil
and put the resource-heavy Toronto market, which is sensitive to
developments in China, in positive territory for the second
straight day after a five-day losing streak in which it lost 3.3
percent.
    The benchmark Canadian index also turned positive on the
year after slipping into negative territory last week. 
    "The news about China's inflation being subdued means the
monetary policy out there will continue to be easy and the
Chinese economy continues to do well," said Elvis Picardo,
strategist and vice president of research at Global Securities
in Vancouver.
    "Anything that gives us some indication that the Chinese
economy is on solid footing should be positive for the TSX," he
added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 139.49 points, or 1.13 percent, at
12,484.05. That was the index's biggest one-day jump since Nov.
19, 2012.
    "This is a very welcome bounce in the TSX, but I'm not sure
how long it will last," Picardo said.
    He said seasonal volatility and profit-taking in May were
likely to weigh on the market.
    The benchmark Canadian index has badly lagged the rallies of
its U.S. peers. Its 0.4 percent rise this year pales in
comparison with an almost 10 percent jump in the S&P 500. 
     Nine of the 10 main sectors on the index were higher on
Tuesday.
    The materials sector, which includes mining stocks, advanced
2.4 percent. 
    Gold stocks, down 20 percent since the start of the year,
provided support. Goldcorp Inc added 3.3 percent to
C$32.97 and Barrick Gold Corp rose 1.5 percent to
C$27.16.
    Agrium Inc shares fell about 3 percent after the
fertilizer maker said its entire slate of directors had been
elected to its board, defeating a rival slate nominated by
dissident U.S. shareholder Jana Partners. 
    Energy shares were up 2.4 percent as the price of oil made
its biggest gain since late December. Suncor Energy Inc 
rose 3.1 percent to C$29.84 and played the biggest role of any
single stock in leading the market higher. 
    Financials, the index's weightiest sector, gained 0.7
percent.