CANADA STOCKS-TSX rallies on upbeat data, resources

Fri Sep 24, 2010 4:52pm EDT
 
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   * TSX closes up 103.07 points at 12,204.86
 * U.S., German data lift sentiment
 * Golds fall despite record bullion prices
 (Updates to close)
 By Claire Sibonney
 TORONTO, Sept 24 (Reuters) - Toronto's main stock index
rallied on Friday as resource prices rose and some solid
economic data eased jitters about the pace of global economic
recovery.
 The move in commodities supported the resource-heavy index
as base-metal miners shot up 4.3 percent, and energy companies
climbed 1.1 percent.
 The price of copper inched closer to the $8,000 a tonne
level, helped by a recent downward trend for the U.S. dollar.
The price of oil popped above $76 a barrel, buoyed by the
bullish data from Germany and the United States.
 Among the biggest gainers, First Quantum Minerals (FM.TO: Quote)
jumped 5.8 percent to C$74.07 while Canadian Natural Resources
(CNQ.TO: Quote) added 2.4 percent to C$33.90.
 On the data front, a surprise rise in Germany's Ifo index
of business sentiment lifted spirits while new orders for a
wide range of long-lasting U.S. manufactured goods rose in
August and business spending plans rebounded strongly.
[MKTS/GLOB]
 "Given the positive sentiment of the market now, investors
are willing to take any positive report and use it as a reason
to move equity markets higher," said Jason Hornett,
vice-president and fund manager at Bissett Investment
Management in Calgary.
 Other data on Friday showed new U.S. home sales were flat
last month, which bolstered speculation the Federal Reserve
will boost the money supply to aid the struggling economy.
[ID:nN24184114]
 U.S. gold futures surpassed $1,300 an ounce, but gold
miners fell 1.1 percent.
 Hornett said investors were simply taking profits on the
back of enormous strength in bullion prices, which have
remained in record territory for days.
 Barrick Gold Corp (ABX.TO: Quote), the world's No. 1 producer,
lost 1.6 percent to C$47.45.
 "It's not surprising to see investors lightening up going
into the weekend," Hornett said.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 103.07 points, or 0.85 percent, at
12,204.86, breaking a three-day slide. All 10 of the index's
main groups were higher, including heavily weighted financials,
which put on 1.1 percent.
 The TSX ended the week 0.3 percent higher, on track to
maintain an unusually strong September.
 "Historically this is a pretty volatile month in terms of
returns, so ... a strong September bodes well for the rest of
the year," added Hornett.
 In individual company news, Potash Corp (POT.TO: Quote) slipped
0.7 percent to C$149.39 after BHP Billiton cleared the first
regulatory hurdle in its $39 billion takeover bid for the
fertilizer producer. But the Anglo-Australian miner still has a
long way to go trying to persuade Canadian authorities and
Potash shareholders. [ID:nN23243172]
 Biovail Corp BVF.TO edged up 0.5 percent to C$27.85,
after Bank of America Merrill Lynch upgraded its shares, and
despite a request by two California legislators to have U.S.
authorities re-examine a proposed $3.3 billion merger between
Canada's largest publicly funded drugmaker and U.S.-based
Valeant Pharmaceuticals International. [ID:544499813]
 ($1=$1.02 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)