August 20, 2009 / 8:47 PM / 8 years ago

CANADA STOCKS-TSX rises as commodities, banks lend support

3 Min Read

 * TSX up 13.68 points, or 0.13 percent, at 10,700.51
 * Materials group rises 0.5 pct on recovery sentiment  (Updates official closing figures, adds details, quote)
 By Jennifer Kwan
 TORONTO, Aug 20 (Reuters) - Toronto's main stock index edged up to a higher close on Thursday as commodity-related shares rose following a rally in Chinese stocks, which helped to soothe investor worries about the pace of economic recovery.
 The index's materials group led the advance with a 0.5 percent gain. In the group, fertilizer producer Potash Corp of Saskatchewan (POT.TO) was up 0.8 percent at C$105.29, and miner Teck Resources TCKb.TO climbed 2.6 percent at C$28.39.
 Adding support, the heavily weighted financial group rose 0.3 percent ahead of quarterly results from Canada's big banks next week.
 "People are setting up the Canadian banks for the earnings next week," said Gareth Watson, Canadian equity advisor in ScotiaMcLeod's portfolio advisory group. He said the rise in the bank group is "based on the expectations earnings are going to be better than expected".
 Royal Bank of Canada (RY.TO), a top heavyweight advancer, was up 0.6 percent at C$50.89, while Bank of Nova Scotia (BNS.TO) climbed 1.2 percent to C$44.89.
 The S&P/TSX composite index .GSPTSE rose 13.68 points, or 0.13 percent, to 10,700.51, with three of its 10 main groups higher.
 Oil prices were steady, settling 12 cents higher at $72.54 a barrel after rising sharply in the previous session, but individual names in the index's energy sector were mixed. Suncor Energy (SU.TO) dropped 1.2 percent at C$34.48.
 The firmness in oil prices was seen adding support to the materials group.
 "Usually when oil prices move they do tend to influence the entire commodities complex. I think perhaps there's a bit of a follow on with that today," Watson said.
 The materials sector was also influenced by improved sentiment after Chinese stocks .SSEC rose 4.5 percent on Thursday, easing concerns about a nearly 20 percent descent in China's equity markets over the past couple of weeks.
 Gold prices were weaker but shares of gold miners were up with the rest of the materials group. Goldcorp (G.TO) was up 0.2 percent at C$38.40, and Agnico-Eagle (AEM.TO) rose 1 percent to C$60.31.
 ($1=$1.09 Canadian)  (Reporting by Jennifer Kwan; editing by Peter Galloway)   

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