CANADA STOCKS-TSX jumps as commodities rally on weak US$

Thu Apr 21, 2011 5:09pm EDT
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 * TSX rises 74.54 points, or 0.54 pct to 13,972.02
 * Six of 10 sectors up, led by materials on gold record
 (Adds details and comments)
 By Claire Sibonney
 TORONTO, April 21 (Reuters) - Toronto's main stock index
jumped to its highest level in more than a week on Thursday,
buoyed by strong North American corporate results and commodity
prices that rose as the U.S. dollar fell.
 Boosted by higher metals prices, including record-high gold
and soaring silver, the index's materials sector climbed 1
percent, leading the market's advance. [GOL/] [MET/L]
 Barrick Gold ABX.TO was up 1.5 percent at C$53.07, while
Silver Wheaton SLW.TO rallied 1.7 percent to C$40.45 after an
analyst upgrade. [ID:nWNBB7941]
 "It's all a product of people losing faith in the U.S.
currency and they want some safety, something secure and
they're picking up the metals," said John Kurgan, senior market
strategist at commodity futures brokerage Lind-Waldock Canada.
 The greenback tumbled for a third straight day to near a
record low against a broad basket of currencies, making
commodities priced in U.S. dollars cheaper for foreign
investors. [FRX/]
 "Silver to me is getting kind of bubbly here," Kurgan said,
noting prices have risen 70 percent in the last three months.
 "I'm getting calls from people I haven't talked to in a
year or two and the reason they're calling is because they want
to buy silver."
 Also in the materials group, diversified miner Teck
Resources TCKb.TO rose 2.2 percent to C$53.83, while
fertilizer producer Potash Corp POT.TO added 1.2 percent to
 U.S. crude prices were also stronger, rising above $112 a
barrel and lifting the index's energy group 0.8 percent. Suncor
Energy SU.TO was up 1.6 percent at C$43.18 and was the
index's heavyweight gainer.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 74.54 points, or 0.54 percent, at
13,972.02. Six of the index's 10 sectors rose, including
financials, up 0.6 percent.
 The index was at its highest level since April 12 and rose
1.3 percent on the week.
 Investors cheered stellar earnings and outlooks from U.S.
companies such as General Electric Co, Morgan Stanley, and
Apple Inc -- which blew past Wall Street expectations. [.N]
 Apple's Canadian rival, Research In Motion RIM.TO, led
decliners on the TSX, down 1.3 percent at C$51.29, after the
launch of RIM's PlayBook tablet computer earlier this week
failed to garner much enthusiasm. [ID:nN19146402]
 The index's gains were also tempered by underwhelming U.S.
jobless numbers and caution ahead of the long weekend. North
American markets will be shut on Friday for the Easter
On the Canadian earnings front, Celestica shares CLS.TO
jumped almost 5 percent to C$10.54 after the contract
electronics maker's quarterly results topped estimates.
 Canadian Pacific Railway CP.TO fell 0.9 percent to
C$59.75 after it reported a 67 percent drop in quarterly profit
as harsh winter weather hampered train operations.
 "We're still waiting to hear the bulk of what's going to
happen with the Canadian earnings, but it seems we're going to
be set up for very, very nice earnings season," said Barry
Schwartz, vice president and portfolio manager at Baskin
Financial Services.   
 "Commodity prices remain strong, oil prices are high and
the Canadian economy seems to be on a roll."
 The focus next week will be on U.S. Federal Reserve
Chairman Ben Bernanke who will hold a press conference
following the Fed's rate-setting meeting. [ID:nLDE73K0B2]
 Markets will be looking for clues on when the Fed is going
to pull the plug on the extraordinarily loose monetary policy
that has weighed on the U.S. dollar.
($1=$0.95 Canadian)
 (Additional reporting by Ka Yan Ng; editing by Peter Galloway)