CANADA STOCKS-TSX gains on oil rally, Bombardier deal

Wed Mar 2, 2011 4:51pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX ends up 21.17 points, or 0.15 percent, at 14,144.02 
 * Bombardier jumps almost 8 pct on Warren Buffett deal
 * Seven of 10 TSX sectors weaker
 (Updates to close, adds details, quotes)
 By Claire Sibonney
 TORONTO, March 2 (Reuters) - Toronto's main stock index
drifted slightly higher on Wednesday, driven by strength in
energy issues and getting a boost from plane maker Bombardier
 U.S. crude oil futures settled above $100 for the first
time since September 2008 as fighting in Libya intensified and
an airstrike near the country's oil infrastructure raised
concerns about a prolonged disruption from the OPEC nation.
 Brent crude also closed at two-and-a-half-year highs above
$116 a barrel. [O/R]
 The rally in oil prices lifted the TSX's hefty energy group
0.9 percent. Canadian Natural Resources CNQ.TO was a top
gainer, advancing 1.6 percent to C$49.73, while Imperial Oil
IMO.TO was up almost 2 percent at C$51.49.
 "Energy prices remain fairly elevated with tensions in the
Middle East and that's creating some strength for energy
producers," said Youssef Zohny, portfolio manager at Van Arbor
Asset Management in Vancouver.
 "One of the big things we've noticed this week and last
week ... energy is helping the TSX outperform most markets,
especially the U.S."
 The industrials group was up almost 0.8 percent after
Bombardier BBDb.TO reached a deal for as many as 120 business
aircraft with Warren Buffett's NetJets Inc. The deal could earn
Bombardier more than $6.7 billion, pushing its stock up 7
percent to C$6.60. [ID:nL3E7E20EN]
 "His name associated with any company tends to get a lift.
But when he puts his money putting in an order, it helps even
more," said Ian Nakamoto, director of research at MacDougall,
MacDougall & MacTier.
 "It's the right time of the cycle to own stocks like that,
meaning the jet market is coming back. We were in a financial
crisis two years ago and obviously we've come back pretty
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 21.17 points, or 0.15 percent, at 14,144.02.
 The TSX spent much of the morning in negative territory,
however, due to worries over turmoil in North Africa and the
Middle East, and concerns over the economic impact of higher
oil prices.
 Seven of the TSX's 10 main sectors were actually weaker,
including the materials group, home to gold and base metal miners, which finished largely flat on similarly unchanged
metal prices. [GOL/] [MET/L]
 Financials were up very slightly, with Toronto-Dominion
Bank TD.TO, ahead 0.7 percent at C$80.50, while Royal Bank of
Canada firmed 0.7 percent to C$56.94.
 "Another reason that we're seeing a bit of strength out of
financials and industrials, Bombardier aside: we saw better
than expected (U.S. private sector) jobs numbers this morning,"
added Zohny.
 "That is kind of foreshadowing a big (U.S. nonfarm
payrolls) jobs number on Friday, which the market is keenly
looking to to give a lift to stocks."
  U.S. private sector employers added more jobs than
expected last month in a sign of steady improvement in the
labor market, while analysts polled by Reuters expect U.S.
nonfarm payrolls later in the week to soar in February.
[ID:nN02213101] [ID:nN01163324]
 Capping the financial's sectors gains however, were
insurers, among the index biggest laggards.
 Manulife Financial MFC.TO dropped 1.7 percent to C$18.06
while Great-West LifecoGWO.TO declined 1.1 percent to C$26.66
and Sun Life Financial SLF.TO retreated 1.3 percent to
 ($1=$0.97 Canadian)
 (Additional reporting by Ka Yan Ng; editing by Rob Wilson)