January 11, 2011 / 9:47 PM / 7 years ago

CANADA STOCKS-TSX posts first rise of 2011 as resources jump

   * TSX jumps 1.18 percent to end at 13,401.05
 * Commodity prices fuel the triple-digit advance
 * Investors zoom in on earnings, euro zone worry put aside  (Adds details, additional comment)
 By Ka Yan Ng
 TORONTO, Jan 11 (Reuters) - Toronto’s main stock index finished higher for the first time this year on Tuesday, surging more than 1 percent as resource issues rallied along with commodity prices.
 Oil and copper prices both rose 2 percent and gold prices firmed, spurring a triple-digit gain for the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE.
 After falling for five straight sessions, the index finished up 155.93 points, or 1.18 percent, at 13,401.05. Eight of its 10 main groups rose, with the materials and oil and gas sectors leading the way with advances of 1.65 percent and 1.97 percent, respectively.
 Utilities was the lone decliner with a 0.15 percent dip. Consumer staples ended unchanged.
 Key advancers included Teck Resources TCKb.TO, which added 4.3 percent to C$63.11, Imperial Oil (IMO.TO), up 3.84 percent at C$40.84, and Royal Bank of Canada (RY.TO), which rose 1.68 percent to C$52.56.
 Shares of silver miners Silver Standard Resources SSO.TO and Coeur D‘Alene CDE.TO were also buoyed by upgrades and metal prices. [ID:nN10227675]
 Canadian Natural Resources Ltd (CNQ.TO) rose 2.2 percent to C$42.50, further recovering from the fall it suffered after last week’s fire. The company said on Tuesday its Horizon oil sands upgrader may be able to produce as much as half of its 110,000-barrel-a-day capacity while repairs are under way. [ID:nN11137747]
 Talisman Energy Inc TLM.TO rose 3.15 percent to C$22.90 after the independent oil producer said it will hold exploration and development spending flat this year with the aim of boosting overall output 5 percent to 10 percent as natural gas prices languish. [ID:nSGE70A07R]
 “Commodities were pushed down for no reason for the past few days. Nothing has changed with the global outlook -- China’s growth is going to continue and as the U.S. economic data improves, there’s going to be more need for commodities that go hand-in-hand with better economies,” said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services.
 Financials were also strong performers, though they ended off session highs with a 0.63 percent gain. Bank of Montreal (BMO.TO) advanced 0.43 percent to C$58.33 after announcing it will buy a Hong Kong-based wealth management firm as it looks to boost its presence in Asia and emerging markets. [ID:nSGE70A0AY]
 Analysts said the prospect of solid corporate earnings was giving ctock market investors the room to look past euro-zone debt concerns for the time being. [MKTS/GLOB]
 “It’s just an overall buoyant environment of news,” said Brian Pow, vice-president of research and an equity analyst at Acumen Capital Partners in Calgary.
 “People are shrugging off what’s going on in Europe in terms of what’s going on with the debt problems there and (are) just focusing in on corporate earnings and corporate performance,” he said.
 Pow pointed to a strong kickoff to the U.S. earnings season with Alcoa Inc (AA.N) reporting a forecast-beating quarterly profit, as well as indications that corporations are more confident about the future and are declaring dividends, such as Dundee Wealth’s announcement of a special cash dividend. [ID:nASA01D5K] [ID:nN10272473]
 Shares of Consolidated Thompson Iron Mines CLM.TO were halted pending news and were last at C$13.38. After markets closed U.S.-based Cliffs Natural Resources (CLF.N) said it was buying Canada’s top homegrown iron producer for C$17.25 a share in cash deal worth C$4.9 billion. [ID:nN11154500]
 ($1=$0.99 Canadian)  (Reporting by Ka Yan Ng; editing by Rob Wilson)                                        

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