Toronto stocks end higher, despite profit-taking

Mon Apr 7, 2008 6:51pm EDT
 
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By Leah Schnurr

TORONTO (Reuters) - The Toronto Stock Exchange's main index benefited from a surge by oil and other commodities on Monday, as resource shares pushed higher, but it lost some steam amid afternoon profit-taking.

Fording Canadian Coal Trust FDG_u.TO was among the biggest lifts on the benchmark, as its units jumped to a new high after Korean steelmaker POSCO (005490.KS: Quote) agreed to a big increase in coking coal prices with another miner, giving fresh evidence of rising contract values. Fording finished up C$3.56, or 6.2 percent, at C$61.26.

Shares of energy and mining companies were also among the biggest weighted advancers, buoyed by a rally in oil, gold and other metals. Inmet Mining IMN.TO was up C$2.00, or 2.3 percent, at C$89.00, while Suncor Energy (SU.TO: Quote) added C$1.52, or 1.5 percent, to C$104.51.

But the index retreated from the day's high of 13,897.39 as it lost momentum to profit-taking in the afternoon.

"It's just very typical of what's been happening the last few days," said Elvis Picardo, investment strategist at Northern Securities Inc., in Vancouver, of the volatility.

"In these markets, I think at some point you're going to decide that this is enough and maybe take your money while you can."

The S&P/TSX composite index .GSPTSE closed up 76.82 points, or 0.56 percent, at 13,745.01 with seven of its 10 main groups in an upswing.

The index has gained more than 7 percent over the past two weeks amid a shift to more positive sentiment on the economic outlook.   Continued...