CANADA STOCKS-TSX buoyed by energy, banks

Tue Aug 23, 2011 11:04am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX up 130.93 points, or 1.1 percent, at 12,199.29
 * Nine of 10 sectors stronger, gold miners drag
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, Aug 23 (Reuters) - Toronto's main stock index
pushed higher on Tuesday morning, lifted by better than
expected Chinese and euro zone manufacturing data and by
domestic bank earnings that started on a positive note.
 Energy and financial shares powered the gains, despite
volatile oil prices, while the first of a wave of Canadian bank
earnings due over the next two weeks topped estimates. [O/R]
 Among the top gainers, Canadian Natural Resources CNQ.TO
jumped 3.3 percent to C$33.99, while Bank of Montreal BMO.TO
climbed 3.1 percent to C$59.11 after it reported double-digit
profit growth due to stronger capital markets revenue and a
recent acquisition. [ID:nN1E77L0PK]
 Bruce Latimer, a trader at Dundee Securities, said BMO's
earnings were a positive start, while data showing a less
gloomy euro zone and Chinese manufacturing outlook added
support, but he cautioned that investors were still very wary
amid light volume and volatile markets. [ID:nL5E7JN0JC]
 "We need a couple days of consolidation, we need a couple
days of no negative global news," he said.
 "We're in that sort of odd trading scenario ... where
investors have been sticking their toe in the water and getting
their ankle bit off. And after a while they just stop doing
that."
 At 10:54 a.m. (1454 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 130.93 points, or 1.08
percent, at 12,199.29. Nine of the 10 main groups were firmer,
as materials were dragged down by weak gold miners.
 Base-metal miners rallied 2.6 percent on higher copper
prices, but precious-metal shares fell 1.7 percent as gold
prices retreated from record highs on the back of a recovery in
higher-risk assets. [GOL/]
 Barrick Gold ABX.TO dropped 1.1 percent to C$51.10, while
Goldcorp Inc G.TO lost 1.6 percent to C$52.77.
 Hopes of more stimulus from the U.S. Federal Reserve also
buoyed markets ahead of Chairman Ben Bernanke's speech at the
central bank's conference in Jackson Hole, Wyoming, on Friday,
as U.S. data continued to disappoint. [nL4E7JN029]
 New U.S. single-family home sales fell more than expected
in July to hit a five month low and the prior month's pace was
revised down, though the supply of homes available on the
market dropped to a record low. [ID:nN1E77M0IK]
  ($1=$0.99 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)