CANADA STOCKS-TSX climbs to 10-month high above 11,000

Tue Aug 4, 2009 5:14pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX closes up 230.95 points, or 2.14 pct, at 11,018.10
 * Highest closing level since Oct. 1
 * Plays catch-up after Monday holiday in Canada
 * Energy, materials sectors lift broader index
  (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Aug 4 (Reuters) - Toronto's main stock index
cracked the 11,000-point level on Tuesday, its highest close in
10 months, boosted by commodity shares as the resource-heavy
market played catch-up with global stocks after Monday's
holiday in Canada.
 The index's energy sector advanced 3 percent despite
lackluster oil prices [ID:nSYD332175]. Top gainers in the oil
patch included Canadian Natural Resources CNQ.TO, which rose
5.1 percent to C$68.06, and Petro-Canada PCA.TO, up 4.9
percent to C$46.69.
 Metals prices strengthened on optimism about economic
recovery and helped push up the index's materials sector by 3
percent. Barrick Gold ABX.TO was up 3.4 percent at C$38.90,
while fertilizer producer Potash Corp of Saskatchewan POT.TO
climbed 2.4 percent to C$102.75.
 The industrials group rose 3.3 percent with Canadian
Pacific Railway CP.TO up 6.9 percent at C$51.21.
 "It's a big catch-up day following the holiday," said Rick
Meslin, head of Canadian equities at UBS.
  U.S. stocks rose on Monday, with the S&P 500 index above
1,000 for the first time in nine months, as rosy manufacturing
data added to optimism about economic recovery. On Tuesday,
U.S. stocks edged higher, due in part to stronger than expected
housing data. [ID:nN04164908] [ID:nN04453698]
 Canadian markets were closed for Civic Holiday on Monday,
when global stocks surged to a nine-month high.
  The S&P/TSX composite index .GSPTSE finished up 230.95
points, or 2.14 percent, at 11,018.10, its highest closing
level since Oct. 1. Nine of its 10 sectors were higher.
Utilities fell 0.1 percent.
  For most of Tuesday, the index flirted with the
11,000-mark but didn't pierce it until the session ended.
 "It's psychology," Meslin said. "It marks a pretty major
move off the bottom."
 The index has risen about 45 percent from its low in March,
when it was around 7,500.
 The move up is "pretty impressive," said Steve Ibel,
institutional equities trader at Beacon Securities in Halifax,
Nova Scotia.
 "Markets in general have been doing pretty well since the
March lows. I think it's important because a lot of people
didn't think it would be there at this point."
 "Will we celebrate 12,000 before the end of the year?
Stayed tuned. It's going to be a tough call to make," he
added.
 The blue chip S&P/TSX 60 index .TSE60 closed 13.94 points
higher, or 2.13 percent, at 668.50.
 ($1=$1.07 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)