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

Tue Jan 11, 2011 5:36pm EST
 
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   * 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: Quote), which
added 4.3 percent to C$63.11, Imperial Oil (IMO.TO: Quote), up 3.84
percent at C$40.84, and Royal Bank of Canada (RY.TO: Quote), which
rose 1.68 percent to C$52.56.
 Shares of silver miners Silver Standard Resources (SSO.TO: Quote)
and Coeur D'Alene CDE.TO were also buoyed by upgrades and
metal prices. [ID:nN10227675]
 Canadian Natural Resources Ltd (CNQ.TO: Quote) 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: Quote) 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: Quote) 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: Quote) 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)