CANADA STOCKS-Energy stocks lead TSX in broad rally

Wed May 18, 2011 5:39pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX up 166.19 points, or 1.24 percent, to 13,607.25
 * Broad rally saw all groups rise
 * Energy shares lead pack on higher oil prices
 By Julie Gordon
 TORONTO, May 18 (Reuters) - Toronto's main stock index rose
more than 1 percent to hit a one-week high on Wednesday, with
oil and gas issues leading a broad rally fueled by a rebound in
energy, gold and copper prices.
 Energy shares, which make up more than a quarter of the
index, rose 2 percent, as oil prices gained more than 3
percent, swept up in a broad commodities rally. [O/R]
 Suncor Energy (SU.TO: Quote) led the way, closing up 2.67 percent
at C$39.56. Canadian Natural Resources CNQ.TO added 2.49
percent to C$40.74, while Imperial Oil (IMO.TO: Quote) gained 2.74
percent to $46.46.
 "There was some bargain hunting going on, trying to find
sort of longer-term opportunities that are at some pretty good
prices," said Brian Pow, vice president of research and equity
analyst at Acumen Capital Partners.
 "People are sort of putting their heads around how much
money's gone into the sector of late," he added. "And just the
overall sort of longer-term bullishness on Canadian oil."
 The Toronto Stock Exchange's S&P/TSX composite index closed
up 166.19 points, or 1.24 percent, at 13,607.25, rebounding
after three straight weeks of declines.
 The materials sector, which includes influential mining
stocks, also helped lift the broader market with a 1.45 percent
gain. Diversified miner Teck Resources (TCKb.TO: Quote) closed up 4.19
percent at C$48.70, while Potash Corp (POT.TO: Quote) gained 2.26
percent to C$53.49.
 Uranium producer Cameco (CCO.TO: Quote), which fell more than 5
percent late last week, closed up 2.93 percent at C$26.71.
 Research In Motion RIM.TO pushed higher for a second
straight day, climbing 3.79 percent to C$44.11, and was one of
the most influential gainers overall. Before their recent turn
higher, RIM shares had fallen nearly 30 percent this year.
 Corporate news was fairly light, so investors  were focused
on climbing resource prices. [GOL/] [MET/L] .CRB
 Still, the composite index is vulnerable, said Michael
Sprung, president at Sprung & Co. Investment Counsel.
 "We've still got enough to worry about around the world,
with problems continuing to build in Europe and the
inflationary pressures that we're beginning to see," he said.
 "But perhaps what's happening today is people are just
jumping in after the decline that we've had."
  The index in general will see continued volatility, said
Pow, especially as summer holiday season starts up and volumes
come off.
 "Volatility will stick through the next couple of months,"
he said. "But overall, I think the trend is upwards for the
long-term."
 ($1=$0.97 Canadian)
 (Editing by Jeffrey Hodgson)