CANADA STOCKS-TSX hits 2011 high as resources rally

Mon Feb 14, 2011 1:08pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX up 151.43 points, or 1.1 pct, at 13,918.19
 * All 10 of the TSX's main groups higher
 (Updates with details, comment)
 By Solarina Ho
 TORONTO, Feb 14 (Reuters) - Toronto's main stock index
extended its rally on Monday, hitting a 2011 high, helped by
January trade data out of China that showed strong and growing
demand for commodities.
 Optimism over China's economic outlook grew as concerns
eased about the country's inflation overheating and as data
showed imports surged, underscoring robust demand.
 The energy and materials groups led the broad-based rally
on the TSX. The two sectors, which make up roughly 50 percent
of the index, rose 1.76 percent and 1.48 percent respectively.
 Suncor Energy (SU.TO: Quote) added 2.68 percent to C$41.33, while
Canadian Natural Resources (CNQ.TO: Quote) rose 2.43 percent to
C$44.25.
 "Those two stocks alone are 25 points of the TSX," said
Irwin Michael, a portfolio manager at ABC Funds.
 "Market is thin, rates are still very low, the economy is
very surreptitiously improving. We like what we see -- this is
a stock picker's market -- so it's individual stocks that are
moving ... China and everything else is just a bit of a
diversion," Michael said.
 At 12:48 p.m. (1748 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 151.43 points, or 1.1
percent, at 13,918.19. The index also hit its highest level
since July 2008.
 All 10 of the TSX's main groups were higher.
 Among miners, Barrick Gold (ABX.TO: Quote) was up 1.86 percent at
C$47.69. Cameco Corp (CCO.TO: Quote), which posted higher than
expected fourth-quarter earnings late on Friday, surged 4.89
percent to C$43.54. [ID:nN14292027]
 The influential and economically sensitive financial group
was also up, climbing 0.95 percent. Toronto-Dominion Bank
(TD.TO: Quote) gained 1.34 percent to C$79.52 while Bank of Montreal
(BMO.TO: Quote) advanced 1 percent to C$60.35.
 Michael said trading was thin due to ongoing concerns over
Egypt, despite the positive news last week that its long-time
president, Hosni Mubarak, had stepped down.
 "People are quite unsure of what the army's going to do,
because you don't have the elections for about six months.
They're giving them the benefit of the doubt ... Apart from
that, concern is it (political unrest) could spread to other
north African and middle eastern countries."
 In individual corporate news, shares of Ventana Gold Corp
VEN.TO rose 4.8 percent to C$12.87, slightly below the price
of a sweetened takeover bid from AUX Canada, controlled by
Brazilian billionaire Eike Batista. Ventana has accepted the
offer. [ID:nN14278978]
 ($1=$0.99 Canadian)
 (Reporting by Solarina Ho; editing by Rob Wilson)