CANADA STOCKS-TSX rises as earnings impress

Wed Apr 21, 2010 10:47am EDT
 
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*TSX up 0.34 percent at 12,154.63

*Materials, financials lead index higher

By Claire Sibonney

TORONTO, April 21 (Reuters) - Toronto's main stock index was gaining for a third straight session on Wednesday morning as robust North American earnings whetted investor appetite.

The index's weighty materials sector was up 0.5 percent. In the sector, shares of Teck Resources TCKb.TO, the country's largest base-metals miner, gained 0.2 percent to C$41.78, after the company reported its first-quarter profit more than tripled. [ID:nN20129089]

The index's energy group was little changed with EnCana Corp ECA.TO, Canada's largest natural gas producer, falling 0.2 percent to C$31.72 despite reporting a quarterly profit that was up three-fold. [ID:nN2099238]

News from the United States also encouraged the market, with Apple AAPL.O reporting a blowout quarter on Tuesday and strong earnings from Morgan Stanley MS.N on Wednesday. [.N]

"Most of the earnings that we're seeing, 75 percent, are better than what the market expects and maybe the bar is too low, but it any event because of that it's creating a bit a of psychological positive out there," said Irwin Michael, portfolio manager at ABC Funds.

"A lot of investors are willing to give the market the benefit of the doubt. Also the longer that the market doesn't come off and selloff -- because most people were anticipating that -- the more of those investors who were sitting on a lot of cash get a little antsy and they want to see that money put to work."   Continued...