December 13, 2010 / 3:22 PM / 7 years ago

CANADA STOCKS-TSX rises with commodities on China relief

3 Min Read

 *TSX up 58.09 points, or 0.44 percent, at 13,297.56  
 *Franco-Nevada falls after says to buy Gold Wheaton  (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Dec 13 (Reuters) - Toronto's main stock index climbed on Monday morning as resource issues rose with commodity prices on upbeat Chinese economic data and on relief that China's central bank did not raise interest rates.
 Key movers on the upside included Suncor Energy (SU.TO), up 1 percent at C$38.56, Barrick Gold (ABX.TO), up 0.7 percent at C$54.22, and Teck Resources TCKb.TO, which rose 1.5 percent to C$58.48. Resource shares were higher as oil and base-metals prices got a lift from data over the weekend that showed China's industrial output topped expectations and inflation rose to a 28-month high in November. [ID:nBJL002113]
 As well, China's central bank raised lenders' requirements instead of benchmark interest rates over the weekend, easing concerns that tighter monetary policy could lead to a slowdown in the Chinese economy.[ID:nL3E6ND0F6]
 The broad market rally reflected relief that China did not raise rates, said Francis Campeau, broker at MF Global Canada, in Montreal.
 "The commodity market pretty much liked that. The whole commodity play, both copper and crude, is giving the TSX a big boost," he said.
 At 9:55 a.m. (1455 GMT), the S&P/TSX composite index .GSPTSE was up 58.09 points, or 0.44 percent, at 13,297.56, with six of its 10 main sectors higher.
 Gold miners also supported the market as bullion prices rose above $1,390 an ounce in Europe on Monday in part as the dollar surrendered early gains against the euro. [GOL/] [FRX/] Kinross Gold (K.TO) rose 0.9 percent to C$18.76.
 In company news, gold royalty company Franco-Nevada (FNV.TO) said that it will buy competitor Gold Wheaton GLW.TO in a cash and share deal worth C$830 million. [ID:nN13191321]
 Franco-Nevada, the top net loser on the market, fell 3 percent to C$32.40, while Gold Wheaton, the most heavily traded stock on the market, soared 14.6 percent to C$5.02.
 ($1=$1.01 Canadian)  (Reporting by Jennifer Kwan; editing by Peter Galloway)                                        

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below