CANADA STOCKS-TSX higher on strength in materials

Wed Nov 17, 2010 4:45pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * Higher copper, steady gold help materials lead TSX higher
 * TSX ends up 55.60 points at 12,657.83
 * Nine of 10 main groups higher; info tech sags
 (Updates to close, adds details)
 By Jennifer Kwan
 TORONTO, Nov 17 (Reuters) - Toronto's main stock index rose
on Wednesday for the first time in five sessions, notching
broad gains as higher prices for some commodities helped
strengthen the hefty materials sector.
 Copper recovered from near two month lows, supported by a
softer U.S. dollar, while gold prices stabilized following
recent sharp moves lower. [MET/L] [GOL/]
 The materials sector, home to mining and fertilizer
companies, rose 0.9 percent. Barrick Gold ABX.TO climbed 0.9
percent to C$50.43 and Kinross Gold K.TO was up 0.4 percent
at C$17.87.
 The sector was also supported by fresh acquisition
activity. Ventana Gold VEN.TO, a junior miner in the vanguard
of an exploration rush in Colombia, has fielded a buyout offer
from its top shareholder that values the company at about C$1.5
billion. [ID:nN17193791]
 Ventana, the most heavily traded stock on the market,
soared 39 percent to C$13.90.
 Teck Resources TCKb.TO rose 1.1 percent to C$48.69 as the
diversified miner said it will raise its dividend by 50
percent, signaling its confidence that rising commodity prices
will enable it to keep generating cash. [ID:nN17188802]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished the day up 55.60 points, or 0.44 percent, to
12,657.83. Nine of the main index's groups were higher, while
the information technology sector shed 1.2 percent.
 "Markets very rarely will go up or down for more than 4 or
5 days," said Gavin Graham, president at Graham Investment
Strategy.
 The market's recent move lower had been largely led by
resources and financials. Resource stocks faltered on fears
that China would increase interest rates to fight inflation,
while euro zone debt woes weighed on the broader market.
[ID:nSGE6AG08D]
 Financials were up 0.4 percent with Canadian Imperial Bank
of Commerce CM.TO higher by 1.6 percent at C$76.65 and Bank
of Nova Scotia BNS.TO up 0.7 percent at C$53.00.
 "Even though there are still some concerns about things
like European debt and the situation in Ireland and the rest of
it, there's perhaps a feeling that the Canadian banks are not
very exposed to the specific problems in Europe and they're
more than well enough capitalized," said Graham.
 Ireland has agreed to work with a European Union-IMF
mission on urgent steps to shore up its shattered banking
sector. A team from the European Commission, the International
Monetary Fund and European Central Bank will travel to Ireland
on Thursday to examine what measures may be needed if Dublin
decides to seek aid. [ID:nLDE6AG004]
 ($1=$1.03 Canadian)
 (Editing by Jeffrey Hodgson)