CANADA STOCKS-TSX rises 1.7 pct as oils and banks advance

Thu Aug 11, 2011 2:55pm EDT
 
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 * TSX up 207.09 points, or 1.7 percent, at 12,405.98
 * Energy, financials drive gains, but golds drag
 * Manulife rises as results tops estimates
 * Open Text drops 17 pct as results miss, targets cut
 (Recasts, updates prices, adds analyst comment)
 By Trish Nixon
 TORONTO, Aug 11 (Reuters) - Toronto's main stock market
index climbed nearly 2 percent on Thursday as energy shares
rebounded on the back of stronger oil prices and financials
gained ground, offsetting pressure from falling gold miners.
 U.S. stocks were also higher, as stronger-than-expected
jobs data took some of the focus away from renewed fears about
the health of the euro zone banking system. [MKTS/GLOB]
 The gain comes after the index on Monday suffered its
biggest intraday drop since 2009 and hit a near one-year low.
 "Nothing goes straight up or down, and it today it looks
like some bargain hunting has come in ... Especially in the
(U.S) banks that were oversold so much and that's spilled over
into our financials." said John Kinsey, portfolio manager at
Caldwell Securities Ltd.
 The energy sector, which had recently taken a heavy
beating, led the index's gains, adding 2.8 percent as the price
of oil recovered from steep losses. [O/R]
 The financials followed, adding 1.9 percent to more than
make up for losses on Wednesday.
 At 2:47 p.m (1847 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 207.09 points, or 1.7
percent, at 12,405.98, rebounding after a 1 percent drop
earlier. Nine of the index's 10 main groups were higher.
 Potash Corp POT.TO topped all influential advancers, up
4.4 percent to C$53.45, while Bank of Nova Scotia BNS.TO was
up 2 percent at C$52.96, and Royal Bank of Canada added 1.7
percent C$50.57.
 The materials sector was up a modest 0.1 percent as most
commodity prices bounced back from their lows this week, but
gold-mining shares pressured the sector as they gave back some
of Wednesday's sharp gains.
 The gold-mining subgroup fell 0.9 percent, tracking the
price of gold which dropped more than 3 percent after reaching
an all-time peak of $1,813.79. [GOL/] [MET/L]
 "It's not surprising," said Kinsey. "You are getting some
profit taking in the metal, and that's weakened some of the
stocks."
 Kinross Gold led the index's decliners, down 6 percent to
C$15.33, while Iamgold Corp  IMG.TO lost 9.2 percent to
C$18.51, and Goldcorp G.TO fell 1.8 percent to C$49.66.
 Helping support the index was Manulife Financial MFC.TO.
Its results topped estimates and rebounded from a year-earlier
loss, as the insurer cut losses associated with weak financial
markets.
 Its shares rose 4 percent to C$13, reclaiming some lost
ground from Wednesday when it was the most influential
decliner. [ID:nN1E77914S]
 Open Text OTC.TO dropped more than 10 percent to C$51.51,
and was the chief weight in the information technology group,
which lost 0.7 percent.
 At least three analysts cut their price targets on the
business software company, the day after it reported a rise in
quarterly adjusted profit, but missed estimates.
[ID:nN1E7791HI][RCH/CA]
 (Editing by Jeffrey Hodgson)