CANADA STOCKS-TSX jumps more than 2 pct on resources, banks

Tue Aug 23, 2011 4:29pm EDT
 
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   * TSX ends up 269.97 points, or 2.24 pct, at 12,338.33
 * Nine of 10 sectors stronger, gold miners sink 4 pct
 (Updates to close, adds details, commentary)
 By Claire Sibonney
 TORONTO, Aug 23 (Reuters) - Toronto's main stock index
closed sharply higher on Tuesday, posting its biggest gain in
nearly two weeks as resource and financial issues rose on
higher commodity prices and surprisingly good bank earnings.
 Canadian investors also took a cue from U.S. markets, where
many players jumped back into stocks before a highly
anticipated speech by Federal Reserve Chairman Ben Bernanke on
Friday, which could signal more stimulus for the economy.
 Energy and financial issues powered the TSX's gains as oil
rose on better risk appetite and continued fighting in Libya,
while the first of a wave of Canadian bank earnings due over
the next two weeks beat estimates. [O/R]
 Among the most influential gainers, Canadian Natural
Resources (CNQ.TO: Quote) surged 6 percent to C$34.88, while Bank of
Montreal (BMO.TO: Quote) jumped 4.3 percent to C$59.80 after it
reported double-digit profit growth due to stronger capital
markets revenue and a recent acquisition. [ID:nN1E77L0PK]
 "Investors are just desperate for some good news out there
and they've been buffeted by the volatilities from the
political inertia both in Europe and the U.S. to deal with some
of these problems," said Michael Sprung, president at Sprung &
Co Investment Counsel.
 He noted that data out of China on Tuesday showing
manufacturing growth there was slowing only slightly was
positive for the outlook on commodities, lifting copper prices
in particular. [MET/L]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 269.97 points, or 2.24 percent, at 12,338.3,
its best one-day rally since Aug. 10. Nine of the 10 main
groups were firmer, as materials were dragged down by sliding
gold miners.
 The biggest gainer on the index was Potash Corp (POT.TO: Quote),
which climbed 6.1 percent to C$53.81 after it was upgraded to
"outperform" from "sector perform" by Scotia
Capital.[ID:nWNAB1801]
 Holding back the day's big gains, precious-metal stocks
plunged nearly 4 percent as the price of gold tumbled from its
first ever foray above $1,900 an ounce in the sharpest one-day
drop in 18 months. [GOL/]
 Goldcorp Inc (G.TO: Quote) sank 5.3 percent to C$50.79, while
Barrick Gold (ABX.TO: Quote) dropped nearly 3 percent to C$50.10.
 ($1=$0.99 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)