CANADA STOCKS-TSX clings to gain as China data offers hope

Wed Nov 11, 2009 5:20pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX up 0.11 percent at 11,439.75
 * Hits highest level in nearly three weeks, then retreats
 * Early oil gains fizzle, but banks, Potash hold the line
 (Adds details paragraphs 11-15)
 By Ka Yan Ng
 TORONTO, Nov 11 (Reuters) - Toronto's main stock index
finished slightly higher on Wednesday in a quiet session marked
by an early jump to a three-week high that eroded as the day
progressed.
 Advances by banks and Potash Corp POT.TO, helped by an
encouraging economic report from China, overpowered a drop in
the energy group that took the index lower, briefly, just
before the close.
 Potash Corp led all gainers, up 1.8 percent at C$106.52,
followed by several big banks. Bank of Nova Scotia BNS.TO
rose 1.1 percent to C$47.82 to lead the banks, while Royal Bank
of Canada RY.TO gained 0.63 percent to C$57.18.
 The index shot up more than 100 points from the get-go as
oil prices firmed above $79 a barrel after Chinese factory
output data signaled the world's third-largest economy has put
the worst of the global financial crisis behind it.
[ID:nPEK212006]
 "The market got excited out of the gate this morning based
on the strong China story and the weak U.S. dollar, but then it
faded," said Francis Campeau, broker at MF Global Canada in
Montreal.
 "We're at technical resistance in both Canada and U.S."
 The S&P/TSX composite index .GSPTSE closed up 13.01
points, or 0.11 percent, at 11,439.75.
 Gold-mining stocks played a role in the TSX index's gains
as the gold price hit a record high near $1,120 an ounce as the
U.S. dollar tumbled. [GOL/]
 Kinross Gold K.TO rose nearly 1 percent to C$20.50.
 On the downside, Suncor Energy SU.TO flipped to being one
of the biggest drags on the index after being the most
influential gainer early on. It fell 0.33 percent to C$36.74.
Shares of fellow oil company EnCana ECA.TO dropped 1.3
percent to C$60.70.
 The price of crude slipped during the session, taking
energy shares down as well, as the U.S. dollar recovered in a
technical rebound. The oil price then resumed its push higher
later in the day but appetite for oil and gas group didn't.
 Shares of Shoppers Drug Mart SC.TO, Canada's biggest
pharmacy chain, dropped 1.55 percent to C$43.79 as investors
looked past a higher quarterly profit and worried about
impending legislative reforms in the province of Ontario.
[ID:nN11360993]
 CAE CAE.TO fell 2.8 percent to C$8.75 after the flight
simulator maker and aviation training company posted a lower
quarterly profit. [ID:nN11325183]
 MF Global's Campeau said activity was lower than usual due
to absent market players. The Canadian bond market and
government offices were closed on Wednesday for Remembrance
Day.
($1=$1.05 Canadian)
 (Editing by Peter Galloway)