February 1, 2011 / 3:52 PM / 6 years ago

RPT-CANADA STOCKS-Resource issues, upbeat data power TSX higher

4 Min Read

 (Repeats without changes)
 * TSX rises 109.10 points, or 0.81 pct to 13,661.09
 * Manufacturing data spurs recovery hopes
 * Uranium producers rally on spot price, supply  (Adds details)
 By Ka Yan Ng
 TORONTO, Feb 1 (Reuters) - Toronto's main stock index climbed sharply on Tuesday morning as commodity prices rose and investors turned their focus from the turmoil in Egypt to U.S. economic data and corporate results.
 A strong start to North American equity markets followed rallies overseas as manufacturing activity in the euro zone accelerated more than previously thought in January, which came on the heels of upbeat U.S. Midwest factory activity and consumer spending figures on Monday.
 Additionally, the U.S. manufacturing sector expanded in January, and prices paid jumped more than expected, according the closely watched index from the Institute for Supply Management.
 "The markets have gotten out of the gate here pretty strong. Commodities are acting a little bit better today. There seems to be some decent interest coming into those sectors," said Bruce Latimer, a trader at Dundee Securities.
 At 10:30 a.m. (1530 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 109.10 points, or 0.81 percent, at 13,661.09, with all 10 of its main sectors advancing.
 Commodity prices were largely stronger, as copper hit a record high and gold began the new month firmer after a heavy January loss, and helped the materials group rise 1.24 percent.
 Oil, however, was moderately lower as the market assessed the risk of Egypt's social unrest spreading to neighboring OPEC members, as well as data showing China's factory growth slowed to a five-month low.
 But the energy group advanced 0.72 percent, helped by expectations that top producers will be reporting solid quarterly results over the next few weeks.
 Top risers on Tuesday included Teck Resources TCKb.TO, up 4.12 percent at C$63.15, while Canadian Natural Resources (CNQ.TO) added 1.9 percent to C$45.51.
 Uranium producers were in the spotlight again, adding to recent gains as spot uranium is currently selling for $70 a pound, having risen more than 65 percent since June.
 "There's some good focus on the uranium sector here the last few days. They seem to be getting a bit of pulse with oil at a high price; you'll surely see some focus into uranium," said Latimer.
 Cameco Corp (CCO.TO) rose for a third straight session, adding 4.38 percent to C$43.33, boosted by news that Kazakhstan, where the company has a mine, is eyeing 10 percent uranium production growth this year. Tight supply was also a factor as Energy Resources of Australia (ERA.AX) will close the processing plant at its Ranger uranium mine for 12 weeks due to bad weather. [ID:nN31242949] [ID:nLDE71001K]
 Other uranium producers were also up strongly, with Uranium One UUU.TO up 4.89 percent at C$6.87 and Denison Mines DML.TO up 5.9 percent at C$3.97.  (Reporting by Ka Yan Ng; editing by Rob Wilson)                                        

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