CANADA STOCKS-TSX rises broadly as Goldman fuels rally

Tue Jul 14, 2009 5:40pm EDT
 
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 * TSX rises 0.95 pct to 9,986.15 for second day of gains
 * Financials lead TSX after strong Goldman Sachs results
 (Adds details, quote, updates numbers)
 By John McCrank
 TORONTO, July 14 (Reuters) - Toronto's main stock index
finished higher for a second straight session on Tuesday in a
broad rally led by financials, which were encouraged by strong
results at Goldman Sachs GS.N in the United States.
 The S&P/TSX composite index .GSPTSE closed up 94.22
points, or 0.95 percent, at 9,986.15. Nine of the index's 10
main groups were higher.
 The financials sector, which accounts for about a third of
the index, ended up 2.01 percent, and the top six advancers on
the TSX were from the financial group, led by Royal Bank of
Canada RY.TO, up 2.9 percent at C$47.86.
 Toronto-Dominion Bank TD.TO followed, up 1.7 percent at
C$58.96. Bank of Nova Scotia also rose 1.7 percent, to
C$42.14.
 "What's helped (the market) for the past couple of days has
been good earnings and good economic news," said Ian Nakamoto,
director of research at MacDougall, MacDougall & MacTier.
 Quarterly earnings at Goldman Sachs surged 33 percent on
strong trading results, handily beating market expectations.
The U.S. banking industry was near collapse just nine months
ago. [ID:nN14289399]
  Johnson & Johnson's JNJ.N quarterly results also beat
analysts' forecasts, pointing to resilient pharmaceutical and
consumer product sales in the United States. [ID:nN14253944]
 "They're sort of two extremes here, I mean Goldman Sachs is
very much of a risk animal, and Johnson & Johnson tends to
attract risk-averse investors, and both companies beat
expectations," said Nakamoto. "It's good that it's not just one
sector doing well."
 Alimentation Couche-Tard ATDb.TO, North America's
second-biggest convenience store retailer and operator of a
string of gas bars, rose 4.3 percent to C$14.92, after it
reported a stronger quarterly profit. [ID:nN14255046]
 In the index's materials group, Barrick Gold ABX.TO
climbed 1.3 percent to C$37.38, and Kinross Gold K.TO rose
1.1 percent to C$21.17, as the price of gold edged higher on
U.S. inflation worries. [ID:nLE288914] The group as a whole was
up 0.66 percent.
 Fertilizer producer Potash Corp POT.TO was one of the
biggest drags on the index, limiting gains in the materials
group.
 Potash Corp fell 2.5 percent to C$95.52, extending a slide
that started on Monday after the head of India's IFFCO, a
farmer fertilizer cooperative, said that three international
companies had agreed to supply Indian buyers with potash well
below current spot market prices. [ID:nBNG121776]
 ($1=$1.13 Canadian)
 (Reporting by John McCrank; editing by Peter Galloway)