CANADA STOCKS-TSX posts 4th day of triple-digit gains on oil

Thu Oct 8, 2009 4:35pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX gains 1.19 percent to 11,484.51
 * Higher commodity prices help power rally
 * Improved sentiment on global economy helps
 (Updates to close)
 By Ka Yan Ng
 TORONTO, Oct 8 (Reuters) - Toronto's main stock index
sailed to its fourth day of triple-digit gains on Thursday as
firm commodity prices and fresh signs of a global economic
recovery fueled key energy shares.
 Top movers were mostly from the oil and gas group, led by
EnCana Corp (ECA.TO: Quote), up 3.49 percent to C$63.10. Canadian
Natural Resources <CNQ.TO rose 3.1 percent to C$72.89, while
Suncor Energy (SU.TO: Quote) climbed 2.64 percent to C$37.71.
TSX's heavy weighting in resource issues benefited from
record high gold prices, a weaker U.S. dollar and a jump in oil
prices above $71 a barrel. [GOL/] [O/R]
 In addition, a surprise profit posted by aluminum producer
Alcoa Inc [ID:nN07320124], followed by a slate of positive
economic news, cheered investors.
 "The U.S. dollar weakness was rather significant. That, and
the Alcoa announcement, caused all the commodities to take
off," said Lex Kerkovius, senior research analyst at McLean &
Partners Wealth Management Ltd., in Calgary.
The S&P/TSX composite index .GSPTSE gained 134.63 points,
or 1.19 percent, to 11,484.51. Eight of 10 sectors were
 Bank of Nova Scotia (BNS.TO: Quote) led all influential decliners,
dropping 0.7 percent to C$47.33, while Royal Bank of Canada
(RY.TO: Quote) lost 0.4 percent to C$56.08.
 "Today is really a commodity story so there may be some
rotation going out of the financials and into the commodities
again," Kerkovius said.
 In economic news, new weekly jobless claims in the United
States dropped to a nine-month low, while retailers saw its
first monthly sales gain since August 2008. A separate report
showed inventories at U.S. wholesalers fell for the twelth
consecutive month in August. [ID:nN08520274]
 Other encouraging data included Canadian housing starts,
which fell 4.6 percent in September from August but still came
in ahead of expectations. The report increased investor
optimism that the economy is pulling out of recession.
($1=$1.06 Canadian)
(Reporting by Ka Yan Ng; Editing by Frank McGurty)