CANADA STOCKS-TSX gains on gold miners and TMX; oils drag

Mon May 16, 2011 5:24pm EDT
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 * TSX up 14.19 points, or 0.11 percent, to 13,391.35
 * Rise in two big groups offset eight down sectors
 * TMX jumps but below offer price after bank-led LSE bid
 (Adds details, comments)
 By Solarina Ho
 TORONTO, May 16 (Reuters) - Toronto's main stock index
pressed higher on Monday, helped by gold miners and financial
shares, which offset the drag from energy issues that tracked
falling crude and gasoline prices.
 Financial shares, which make up almost a third of the
index, rose 0.26 percent, bolstered by news of a C$3.6 billion
($3.7 billion) homegrown takeover proposal for Toronto Stock
Exchange operator, TMX Group X.TO.
 The new offer is higher than the London Stock Exchange's
LSE.L competing bid for TMX Group. [ID:nN16294406]
 All six of the big Canadian banks were higher, with  
Toronto-Dominion Bank TD.TO gaining 0.66 percent to C$82.24,
while National Bank of Canada NA.TO rose 0.79 percent to
 TMX Group jumped 5.51 percent to C$44.05, though the stock
was still below the C$48-a-share bid proposed by the Canadian
bank and pension fund consortium.
 "The real feature was the TMX Group which traded up on the
bid by the banks and pension funds," said John Ing, president
of Maison Placements Canada.
 "There is speculation now that the London Stock Exchange
and the TMX will have to come back and counter that bid."
 Gold-mining shares remained aloft even as gold prices
gyrated near the unchanged level. [GOL/]
 Goldcorp G.TO advanced 2.12 percent to C$47.26, while
Barrick Gold ABX.TO edged up 0.83 percent to C$43.99. The
index's global gold subgroup advanced 0.91 percent.
 Along with gold miners, other constituents of the index's
materials group, up 0.92 percent, were also higher. Fertilizer
producer Potash Corp POT.TO rose 2.24 percent to C$51.04
while First Quantum Minerals FM.TO climbed 4.6 percent to
 "The commodities have had such a rout. I don't know if this
is partly short-covering," said Ian Nakamoto, director of
research at MacDougall, MacDougall & MacTier, noting the
economic landscape is still very fragile.
 "But short-covering is different than coming in and buying
long ... on these commodity stocks. Unless you have a
particular story, it could still be a tough slug through the
end of summer."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed 14.19 points higher, or 0.11 percent, to
 Eight of the index's remaining groups were lower, but with
two of its three powerhouse sectors -- materials and financials
 -- making up more than 50 percent of the weight, it was able
to offset those losses.
 Energy stocks were down 0.66 percent, reversing earlier
gains. Canadian Oil Sands COS.TO slumped 4 percent to
C$29.74, while Imperial Oil IMO.TO slipped 0.6 percent to
C$33.88. Four of the five main draggers on the main index were
energy stocks.
 Gasoline futures tumbled nearly 5 percent and knocked down
crude prices $2 on signs of weakening demand. Oil has fallen
more than 15 percent this month on mounting worries about
energy demand and the economy. [O/R]
 "It was sort of a mixed bag ... There are seasonal
influences at work," said Ing. "Looks like the commodity stocks
-- they tried to rally early last week and it failed, so we
might have to have another washup, but I think the worse is by
and large over."
 ($1=$0.97 Canadian)
 (Additional reporting by Ka Yan Ng; Editing by Jeffrey