CANADA STOCKS-TSX hits eight-week high on resource share rally

Thu Nov 20, 2014 5:04pm EST
 
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* TSX up 95.03 points, or 0.63 percent, at 15,075.18
    * Seven of 10 main index sectors advance
    * Gold-mining shares jump 2.8 percent

    By John Tilak
    TORONTO, Nov 20 (Reuters) - Canada's main stock index rose
to its highest in eight weeks on Thursday as rising commodity
prices boosted the shares of gold miners and energy producers.
    A stronger U.S. dollar helped support bullion, which also
benefited from investors looking to take advantage of a recent
decline. 
    The market largely shrugged off concerns about the global
economy, which resurfaced as data showed a slowdown in growth in
China's factory sector and sluggish private sector growth in
Europe.  
    The energy sector, which has taken a beating recently over
concerns about increasing supply and sluggish demand, rebounded
strongly as oil prices rose in anticipation of a positive
outcome from an Organization of the Petroleum Exporting
Countries meeting next week. 
    "What they'd like to do is to send a signal that there is a
greater level of cohesion amongst their membership, and that
should go some way in improving the pricing dynamic," said Les
Stelmach, senior vice president and portfolio manager at
Franklin Bissett Investment Management.
    "I don't think we're going to get a real snapback in crude
oil prices next week just because of the results of some
meeting. It does take time before supply and demand imbalances
are ironed out.
    "I'm not willing to step out and say that we've hit bottom
because nobody knows until after the fact. But it should be a
more constructive environment going forward," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 95.03 points, or 0.63 percent, at 15,075.18.
Seven of the 10 main sectors on the index were higher.
    The shares of energy producers advanced 2.8 percent.
Canadian Natural Resources Ltd gained 3.7 percent to
C$42.15, and Suncor Energy Inc added 2.5 percent to
C$39.69.
    The gold-mining sector jumped 2.8 percent. Barrick Gold Corp
 advanced 3.1 percent to C$14.53, and Goldcorp Inc
 was up 2.7 percent, at C$23.34.
    Nevsun Resources Ltd shares shot up more than 11
percent to C$4.72 after a Bloomberg report citing unnamed
sources said mining fund QKR Corp is close to making a bid for
the company. Nevsun said it is not aware of any bid.
 

 (With additional reporting by Jeffrey Hodgson; Editing by W
Simon, Nick Zieminski and Andre Grenon)