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: Quote) 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: Quote), up 2.9 percent at C$47.86.
 Toronto-Dominion Bank (TD.TO: Quote) 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: Quote) 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: Quote), 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: Quote)
climbed 1.3 percent to C$37.38, and Kinross Gold (K.TO: Quote) 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: Quote) 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)