CANADA STOCKS-TSX heads higher as resource prices rise

Tue Aug 18, 2009 10:37am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX rises 0.94 percent to 10,630.24
 * Materials, energy groups lead move as resource prices up
 * Investors shrug off unexpected dip in U.S. house starts
 (Adds details)
 By Ka Yan Ng
 TORONTO, Aug 18 (Reuters) - Toronto's main stock index
advanced broadly on Tuesday morning as renewed risk appetite
and firmer commodity prices helped lift the resource-heavy
index after a big loss the previous session.
 Rising gold prices and a rebound in oil prices boosted the
index's hefty materials and energy groups, which climbed 1.44
percent and 0.97 percent, respectively.
 Key gainers included miner Barrick Gold ABX.TO, up 2.2
percent at C$37.06, and oil company Suncor Energy SU.TO, up
1.4 percent at C$34.89.
 Fertilizer producer Potash Corp POT.TO was also a key
riser, up 0.6 percent at C$101.25, after the company said North
American potash pricing declined in July, but manufacturers'
inventories in North America fell for the first time this
year.[ID:nN1841180]
 At 10:17 a.m. (1417 GMT), the S&P/TSX composite index
.GSPTSE was up 98.65 points, or 0.94 percent, at 10,630.24,
recovering a portion of its 2.9 percent tumble on Monday, when
it touched its lowest level in just over two weeks.
 "How commodities go, so goes the Toronto market," said Sal
Masionis, stockbroker at Brant Securities. "It's little bit of
a rebound, a respite from yesterday's massacre."
 The index's financial group was up 0.5 percent, with most
banking stocks posting gains as two brokerages lifted price
targets on the shares of Canada's big banks. [ID:nBNG395882]
[ID:nWNBB6765]
 In addition, Genuity Capital Markets raised shares of
National Bank of Canada NA.TO to a "buy" from "hold", while
Macquarie boosted Toronto-Dominion Bank TD.TO and Canadian
Western Bank CWB.TO to "neutral" from "underperform".
 TD was up 0.9 percent at C$62.75.
 Investors took in stride an unexpected fall in U.S. housing
starts. They fell 1 percent in July, mostly because of a drop
in multifamily dwellings. But a rise in single-family home
construction for a fifth straight month kept hopes alive that
the U.S. economy is poised to recover from recession.
[ID:nCAT002800]
 ($1=$1.11 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)