CANADA STOCKS-TSX gathers strength as commodities rise

Tue Aug 18, 2009 5:01pm EDT
 
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 * TSX up 142.25 points, or 1.35 percent, at 10,673.84
 * Materials, energy groups lead climb
 * RIM up 4.3 percent after RBC raises share price target
 * Market shrugs off unexpected dip in U.S. house starts
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Aug 18 (Reuters) - Toronto's main stock index
bounced higher on Tuesday as market sentiment brightened and
rising commodity prices helped lift the resource-heavy index
after Monday's steep descent.
 Rising gold and oil prices boosted the index's key
materials and energy groups, up 1.8 percent and 1.9 percent
respectively. [ID:nSIN440961]
 "For the Canadian market it has a lot to do with materials,
with the fact that gold is up a few dollars and then crude is
also up a couple bucks. Any time those two go up our market
does well," said Jennifer Radman, vice-president and associate
portfolio manager at Caldwell Investment Ltd.
 Radman said the upbeat mood on Bay Street was helped by
better than expected quarterly results from big U.S.-based
retailers Home Depot HD.N and Target TGT.N.
 "It has a lot to do with sentiment," she added.
 Comments from Olivier Blanchard, chief economist at the
International Monetary Fund, also helped brighten the mood.
Blanchard said in an article the global recovery has begun,
though it will take time for the economic scars to heal.
[ID:nN18299934]
 The S&P/TSX composite index .GSPTSE finished the day up
142.25 points, or 1.35 percent, at 10,673.84, recovering some
of Monday's 2.9 percent tumble.
 Key gainers included EnCana Corp ECA.TO, ahead 2.7
percent at C$56.50, and Suncor Energy SU.TO, up 1.5 percent
at C$34.94.
 Research In Motion Ltd RIM.TO RIMM.O rose 4.3 percent
to C$81.49 after RBC Capital raised its share price target for
the BlackBerry maker, as well as for smartphone rivals Apple
Inc AAPL.O and Palm Inc PALM.O, citing strong growth in the
sector. [ID:nBNG257671]
 The index's big financial group rose 0.5 percent, with many
banking stocks posting gains after Genuity Capital Markets
lifted price targets on the shares of Canada's big banks.
[ID:nBNG395882] Toronto-Dominion Bank TD.TO climbed 0.48
percent to C$62.50.
 Investors bid up U.S. stocks as well, shrugging off an
unexpected fall in U.S. housing starts in July.
[ID:nN18415083]
 "We got a little bit oversold yesterday so we're just
bouncing back," said Levente Mady, market strategist at Union
Securities in Vancouver.
 The index dropped 316 points on Monday, battered by fears
about the pace of economic recovery and the health of U.S.
consumer confidence.
 The blue chip S&P/TSX 60 index .TSE60 closed 8.32 points,
or 1.31 percent, higher on Tuesday at 641.90.
 ($1=$1.10 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)