CANADA STOCKS-TSX ends three-day skid with broad rally

Mon Jan 24, 2011 5:31pm EST
 
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   * TSX rises 89.01 points to 13,347.58
 * Nine of 10 main sectors higher
 (Updates with additional details, comment)
 By Cameron French
 TORONTO, Jan 24 (Reuters) - Toronto's main stock index
ended a three-day losing streak on Monday, pushing higher in a
broad rally led by industrial, financial and tech issues.
 With a dearth of economic or earnings news, investors
sought bargains in the expectation that the market's rally of
the past three months would continue as the Canadian
fourth-quarter reporting season gathers steam.
 "I think it's a bit of a bounce back from what we had last
week. It seems to be a 'buy on dips' mentality," said Ian
Nakamoto, director of research at MacDougall, MacDougall &
MacTier.
 The S&P/TSX composite index .GSPTSE finished the session
up 89.01 points, or 0.67 percent, at 13,347.58. Nine of the
index's 10 main sectors rose.
 Resource issues were the laggards, with energy stocks
easing on the back of weaker oil prices. Materials stocks rose
just 0.4 percent, undercut by a retreat in gold-mining shares
after they gained early in the session.
 Crude oil futures ended lower for the fifth straight
session, falling about 1.4 percent, on high stockpiles. Gold
prices eased 0.5 percent on technical selling.
 Quadra FNX Mining QUX.TO was the worst performer among
materials issues, plunging 10.8 percent to C$13.90 after the
base metals producer reported 2010 copper production that fell
well short of earlier forecasts.
 BlackBerry maker Research In Motion RIM.TO rose 2.6
percent to C$62.35, regaining some of last week's steep losses.
RIM's gains helped drive the TSX tech sector up 1.7 percent.
 Industrial issues were spurred by Canadian National Railway
CNR.TO, which rose 1.5 percent to C$68.45 after the country's
biggest railway said it had reached an agreement with unionized
workers, averting a strike.
 Also among industrials stocks, Air Canada ACb.TO gained
2.3 percent to C$3.08, while engineering firm SNC-Lavalin
SNC.TO added 1.6 percent to C$62.07.
 Financial issues, which make up the largest percentage of
the index, rose 0.8 percent, led by Brookfield Asset Management
BAMa.TO, which climbed 2.4 percent to C$33.16, and insurer
Manulife Financial MFC.TO, which gained 1.6 percent to
C$17.52.
 Elvis Picardo, a strategist at Global Securities in
Vancouver, said investors still appear to be in a buying mood,
noting the U.S. Dow Jones industrial average .DJI pushed to
within a few points of the 12,000 level on Monday, the first
time it has been that high since mid-2008.
 The upcoming rush of earnings, which will begin in earnest
this week in Canada, will be key to determining whether the
market can sustain further gains.
 Canadian National and grocer Metro Inc MRUa.TO are set to
report results on Tuesday.
 "Investors are waiting for stocks to deliver in terms of
the earnings, because expectations are quite high," Picardo
said.
 ($1=$0.99 Canadian)