CANADA STOCKS-TSX bounces back on upbeat economic data

Tue Jun 14, 2011 4:41pm EDT
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   * TSX ends up 158.10 points, or 1.22 pct, at 13,097.82
 * Nine of 10 main groups finish higher
 * Index closes back above 13,000
 By Claire Sibonney
 TORONTO, June 14 (Reuters) - Toronto's main stock index
bounced back on Tuesday, climbing from a 6-1/2 month low hit in
the previous session, as positive economic data lifted market
sentiment and investors scooped up battered shares.
 Energy stocks jumped almost 2 percent, while the
mining-heavy materials sector gained 1.2 percent and financials
climbed 0.9 percent. The three hefty sectors make up more than
75 percent of the index's weight.
 Suncor Energy (SU.TO: Quote) was the most influential gainer,
advancing 2.1 percent to C$38.39. Bank of Nova Scotia (BNS.TO: Quote)
followed, with a 1.4 percent rise to C$57.70, while diversified
miner Teck Resources TCKb.TO gained 3 percent to C$46.29.
 A flurry of economic data encouraged investors to dip back
into riskier assets, including equities and commodities.
 Better-than-expected U.S. retail sales and Chinese economic
data boosted market optimism, as did stronger domestic
manufacturing figures.
 "Markets appear to be oversold. The question is, is the
game back on, meaning the classic risk-on trade," said Robert
McWhirter, president and portfolio manager at Selective Asset
 "On a very near-term basis we're still trying to figure out
is this just a bounce or is it the start of something more
interesting. My guess is we're still unfortunately going to
chug along, grinding for two to three weeks before a resumption
back to the upside."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 158.10 points, or 1.22 percent, at
13,097.82. All sectors except telecoms were stronger. It was
the market's biggest one-day gain in nearly four weeks.
 The TSX had suffered a string of declines before Tuesday,
falling about 10 percent since the the 2011 high reached in
March. On Monday, it closed below 13,000 for the first time
since late November, as a downgrade of Greece's credit rating
resulted in more economic pessimism.
 Data showed Canadian industrial capacity use rose in the
first quarter as manufacturers exhibited renewed strength after
a year of slowing growth. [ID:nN14284333]
 Retail sales in the United States -- Canada's largest
trading partner -- fell less than expected in May, giving some
respite to investors overwhelmed by recent weak economic news.
 Chinese data, including inflation and industrial output,
suggested economic growth was slowing, but not too quickly,
relieving concerns that the world's second-biggest economy was
heading for a hard landing.
 On the corporate front, Sino-Forest TRE.TO, the target of
a scathing attack from short-seller Muddy Waters, said on
Tuesday its internal review of fraud allegations leveled
against the company will take up to three months to complete.
The news sent its shares plunging 33 percent to C$3.36.
 Air Canada ACa.TO rallied 5 percent to C$1.88 as shares
of the country's biggest airline recovered from an earlier
selloff ahead of a strike by customer service and ticket sales
 The airline said it would continue to operate its full
schedule despite the strike and that it was ready to resume
discussions at any time with the Canadian Auto Workers union.
 Meantime, the federal government said it was prepared to
legislate an end to the dispute because of the serious effect
it could have on the economy.
 ($1=$0.97 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)