CANADA STOCKS-TSX rallies on commodities, Italy hopes

Fri Nov 11, 2011 12:57pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX up 170.06 pts, or 1.4 pct, at 12,278.93
 * Italy passes austerity measures package
 * Mining stocks lead rally
 (Adds details)
 By Jon Cook
 TORONTO, Nov 11 (Reuters) - Toronto's main stock index was
up more than 1 percent at midday on Friday as commodity prices
rose on optimism that Italy would pass an austerity package
that would calm fears about Europe's debt crisis.
 Global stocks were buoyed by the Italian senate's vote in
favor of a package of austerity measures that were demanded by
the European Union in the face of Italy's severe debt problems.
The package must still be passed by Italy's lower house,
leaving a degree of investor nervousness. [MKTS/GLOB]
 "Commodity prices look like they have some bounce to them,"
said Paul Taylor, chief investment officer at BMO Harris
Investment Management Inc.
 "If we get by the euro zone issues again, the economic
indicators are inconsistent with an outright global economic
recession, so that's not a bad backdrop for what we produce in
abundance here in Canada," Taylor said.
 Also fueling the index's rise was upbeat U.S. consumer data
as a Thomson Reuters/University of Michigan index on consumer
sentiment rose to its highest level in five months.
 After two straight down sessions, the Toronto Stock
Exchange's S&P/TSX composite index .GSPTSE was up 170.06
points, or 1.4 percent, at 12,278.93.
 The index's heavily weighted materials sector, home to
base-metal and gold miners, surged more than 2 percent, nearly
erasing Thursday's losses.
 Barrick Gold Corp  ABX.TO led the sector, rising 2.6
percent to C$53.36, as bullion prices headed for their third
straight week of increases. [GOL/]
  Base metals miners performed strongly, boosted by rising
copper prices, jumping more than 2.5 percent. The sector was
led by First Quantum Minerals FM.TO, which was up more than 5
percent at C$19.25 after falling more than 20 percent the last
two sessions.
 Teck Resources TCKb.TO was also among the sector's top
gainers, rising 2 percent to C$38.54.
 Rare earths producer Neo Material Technologies NEM.TO
gained nearly 6 percent to C$8.47, a day after it reported a
record third-quarter profit, beating market expectations.
 All of the index's 10 main sectors were higher, with energy
and financials both up more than 1 percent.
 Suncor Energy Inc SU.TO climbed 2.3 percent to C$32.34 to
lead energy stocks, which rose 1.5 percent as oil prices rode
the commodities wave. [O/R]
 Financial stocks were led higher by Royal Bank of Canada
RY.TO, whose shares rose 1.5 percent to C$45.67.
 Power Financial Corp's PWF.TO POW.TO shares were up
2.55 percent at C$26.15 after it reported a higher profit due
to stronger results at its insurance and mutual fund
subsidiaries. [ID:nN1E7AA0T5]
  ($1=$1.01 Canadian)
 (Editing by Jeffrey Hodgson and Peter Galloway)