CANADA STOCKS-TSX hits 3-week high on European optimism

Wed Oct 12, 2011 5:31pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 *TSX ends up 154.41 points, or 1.3 percent, at 12,029.96
 *Nine out of 10 sectors end higher
 (Adds details, comments)
 By Ashleigh Patterson
 TORONTO, Oct 12 (Reuters) - Toronto's main stock index rose
more than 1 percent on Wednesday to its highest close in more
than three weeks as hopes spread that Europe would find a
solution to its financial crisis.
 Among the top gainers, Suncor Energy (SU.TO: Quote) rose 2.63
percent to C$29.61 as Brent crude oil rallied for a sixth
straight session, helped up by optimism over the euro-zone debt
crisis .[O/R] Fellow oil company Canadian Natural Resources
(CNQ.TO: Quote) rose 2.66 percent to C$32.04, up 2.66 percent.  
 "I think those are some of the stocks that got hit hard in
the last three or four weeks. It was a source of liquidity when
the market was selling off and now people are seeing them as
sources of value," said Bruce Latimer, trader at Dundee
 The TSX index's rise followed the move of other major world
exchanges, which also hit three-week highs as investors cheered
after politicians in Slovakia reached a deal that will let the
country approve an expansion of the euro zone's rescue fund.
 Slovakia is the last country in the 17-member currency zone
left to approve the revamped European Financial Stability
Facility. [ID:nL5E7LC0JT]
 "I think the stage was set for an explosive rally and no
question the tide turned Tuesday. The No. 1 (reason) is that
European issues will be resolved and more certainty that action
will come," said Barry Schwartz, vice president and portfolio
manager at Baskin Financial Services.
 In the United States, the S&P 500 index traded above 1,200
for the first time in three weeks. A sustained break above the
key resistance level of 1,215 would be seen as a bullish sign,
analysts said.
 The Toronto Stock Exchange's S&P/TSX composite ended up
154.41 points, or 1.3 percent, at 12,029.96  .GSPTSE, with
its move over the past five sessions its biggest rally in
nearly two months.
 Nine of the index's 10 sectors were up, with the
information technology group, home to BlackBerry maker Research
In Motion RIM.TO, the sole decliner.
 RIM closed down 3.46 percent at C$24.27 as the company
struggled to work through a service outage caused by a backlog
of messages after a core switch failure in Europe. The company
said there was no hack or breach of its systems.[ID:N1E79B1JU]
 Highly leveraged to the stock market, Manulife Financial
(MFC.TO: Quote) finished strong on Wednesday, rising 3.96 percent to
C$12.85 on the upswing in risk sentiment.
 Among other financial shares, Toronto-Dominion Bank (TD.TO: Quote)
rallied 1.27 percent to C$75.20, and Royal Bank of Canada
(RY.TO: Quote) rose 1.84 percent to C$48.83.
 Lagging the price of the commodity, gold miners were among
the biggest decliners. Barrick Gold (ABX.TO: Quote) ended down 0.69
percent at C$48.98, while Goldcorp (G.TO: Quote) fell 0.63 percent to
C$48.65, and Eldorado Gold (ELD.TO: Quote) dropped 0.89 percent to
 Spot gold rose to $1,678.80 an ounce on Wednesday and has
jumped 2.5 percent in the past three sessions, rising with
other commodities despite its inverse relationship with risk
($1=$1.02 Canadian)
 (Reporting by Ashleigh Patterson; editing by Peter Galloway)