CANADA STOCKS-TSX hits 1-week high on robust China data

Wed Apr 10, 2013 5:04pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX rises 50.86 points, or 0.41 percent, at 12,534.91
    * Nine of 10 main sectors advance
    * Barrick falls almost 9 pct after Chilean court suspends
project
    * Gold shares down 4.3 percent overall

    By John Tilak
    TORONTO, April 10 (Reuters) - Canada's main stock index
extended its gains to a third straight day on Wednesday, hitting
a one-week high, as positive trade data from China buoyed hopes
for a global economic recovery and lifted financial and energy
shares.
    The gains offset weakness in Barrick Gold Corp and
other gold shares. The world's biggest gold mining firm was hit
by a court in Chile temporarily suspending construction at a
huge mine there. [ID: nL2N0CX0II]
    The price of bullion tumbled after minutes of a Federal
Reserve meeting showed some policymakers expected to slow the
pace of bond purchases and discontinue them by year end. 
    Data showed that Chinese imports of key commodities
rebounded in March as hopes of a strengthening economy
encouraged end-users to ramp up production and cautiously
replenish stocks. 
    Those figures followed upbeat Chinese inflation numbers on
Tuesday and helped the resource-heavy Toronto index extend its
recovery from a five-day losing streak last week, when it lost
3.3 percent.
     "There is a sense of optimism that maybe things are turning
around, especially on the resources side. That is helping the
mood out there," said Serge Pepin, vice president of investment
strategy at BMO Asset Management Canada.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 50.86 points, or 0.41 percent, at 12,534.91,
after reaching 12,555.68, its highest point in a week.
    On Tuesday, the index recorded its biggest one-day
percentage jump in more than four months.
    "Investors are still comfortable with the risks associated
with equities, and the rally that we saw start in mid-November,
while it took a breather last week, really remains intact," said
Craig Fehr, Canadian market strategist at Edward Jones in St.
Louis, Missouri. 
    The benchmark Canadian index is up more than 6 percent since
a low in November despite last week's selloff.
    Nine of the 10 main sectors on the index were higher.
    Gains were limited by a 2.9 percent decline in the materials
sector, which includes mining stocks. Gold prices were down
about 1.7 percent, and gold shares fell 4.3 percent.
    Barrick Gold fell 8.7 percent to C$24.81 following a Chilean
court suspended construction of the miner's $8.5 billion
Pascua-Lama gold and silver mine after indigenous communities
said the project was destroying glaciers and harming water
supply.
    Financials, the index's weightiest sector, added 1.4
percent. Royal Bank of Canada gained 2 percent to
C$61.38 and played the biggest role of any single stock in
leading the market higher.
    Energy shares climbed 1.1 percent.