CANADA STOCKS-TSX ends higher on optimism ahead of EU summit

Fri Oct 21, 2011 4:34pm EDT
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   * TSX ends up 119.16 points, or 1.01 pct, at 11,949.49
 * Nine of 10 main sectors stronger, led by commodities
 * Index ends week 1.1 percent lower
 * European leaders to hold crisis summit on Sunday
 * Fed officials argue for more mortgage bond purchases
 (Updates to close)
 By Claire Sibonney
 TORONTO, Oct 21 (Reuters) - Toronto's main stock index
pushed higher on Friday on fragile optimism that European
leaders would make progress in resolving the euro zone's debt
crisis over the next few days.
 Nine of the TSX's 10 main sectors were stronger, led by
energy and financial issues. Among the top gainers, Canadian
Natural Resources CNQ.TO jumped 3.8 percent to C$33.66, Royal
Bank of Canada RY.TO climbed 0.95 percent to C$48.04 and
Toronto-Dominion Bank TD.TO added 1.1 percent to C$74.50.
 "The shorts are covering so that they'll be flat for the
weekend, just in case. That would be the prudent thing to do,"
said John Kinsey, portfolio manager at Caldwell Securities.
 Hurdles remain in resolving the euro zone debt crisis, with
European leaders scheduled to hold a summit this weekend. While
important differences still separate major players France and
Germany, investors took it as a positive that their leaders set
a target date of Wednesday for reaching a solution.
 "The focus has been ... whether or not Greece is going to
default, which most people feel they will, what's going to
happen to the French banks, what's going to happen to the
European Union itself. So until that's resolved, this
nervousness isn't going to go away," added Kinsey.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 119.16 points, or 1.01 percent, at
11,949.49. The telecoms sector was the day's only decliner,
slipping 0.2 percent.
 The TSX was down 1.1 percent for the week.
 Talk of more stimulus by the Federal Reserve also provided
market support as two top Fed officials argued earlier this
week that the U.S. central bank should consider resuming
large-scale mortgage bond purchases. [ID:nN1E79J29O]
 "Those measures suggests that additional Fed easing is
waiting in the wings. I think it's negative for the (U.S.)
dollar, it's supportive of gold, supportive of risky assets,
and I think that's what seems to be  churning through the
market," said Fergal Smith, managing market strategist at
Action Economics.
 Safe-haven gold prices were stronger, despite the risk-on
tone in the market. Recently depressed precious metal miners
were up 0.7 percent.
 In individual company news, Precision Drilling PD.TO fell
5.3 percent to C$10.98 despite reporting a 48 percent rise in
third-quarter profit. [ID:nL3E7LL1KC]
 Contract electronics maker Celestica rose 1.3 percent to
C$8.00 after announcing its third-quarter profit more than
doubled. [ID:nL3E7LK3BD]
 U.S. stocks also gained ground as about half of the
companies on the S&P 500 that have reporting earnings through
Friday have topped analysts' expectations. [.N]
 ($1=$1.01 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)