CANADA STOCKS-TSX climbs as U.S. data adds to recovery hope

Fri Aug 7, 2009 4:46pm EDT
 
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 * TSX up 91.96 points, or 0.85 percent, at 10,885.33
 * Financials rise 1.8 pct on hope about recovery
 * Index up 0.9 percent for the week
 * Rosy U.S. jobs data overshadows Canada report
 (Adds official closing numbers, details, quote)
 By Jennifer Kwan
 TORONTO, Aug 7 (Reuters) - Toronto's main stock index shot
higher on Friday as the market shrugged off a weak Canadian
employment report and focused on rosier-than-expected U.S. jobs
data, which added to optimism about economy recovery.
 The U.S. jobs data for July may be clearest sign yet that
the U.S. economy is turning around  [ID:nN07385157], and the
TSX rose along with U.S. stocks in response.
 The index's financial sector rose 1.8 percent, and gainers
included Royal Bank of Canada RY.TO, up 2 percent at C$51.09,
and Canadian Imperial Bank of Commerce CM.TO, which climbed
4.2 percent to C$68.75.
 "The jobs numbers in the U.S. are much better than
expectations so it's just another nail in the coffin of the
recession," said Ian Nakamoto, director of research at
MacDougall, MacDougall & MacTier.
 In Canada, however, job losses were more than double
expectations, prompting Finance Minister Jim Flaherty to warn
against any "euphoria" over imminent economic recovery.
[ID:nN07405786]
 The S&P/TSX composite index .GSPTSE closed 91.96 points,
or 0.85 percent, higher at 10,885.33, with seven of its 10 main
groups rising. The index was up 0.9 percent for the week.
 Nakamoto said part of the rise in the hefty financials
group, which makes up about one-third of the TSX's weighting,
was investors bidding up stocks following a 5.6 percent decline
in the group on Thursday that was spurred in large part by a 50
percent dividend cut by Manulife Financial MFC.TO.
 The energy group sagged 0.1 percent on Friday, pulled down
by weaker oil prices. [ID:nSP458159] Suncor Energy SU.TO fell
2 percent to C$36.32.
 The materials group was lower, down 0.8 percent, as the
price of gold eased. Gold miners Kinross K.TO and Agnico
Eagle AEM.TO both fell by just over 2 percent.
 ($1=$1.08 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)