CANADA STOCKS-TSX surges back above 14,000, led by miners

Fri Feb 25, 2011 5:20pm EST
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   * TSX ends up 184.82, points, 1.33 pct at 14,052.13
 * Eight of the 10 main groups rise
 (Updates to market close, adds quotes)
 By John McCrank
 TORONTO, Feb 25 (Reuters) - Toronto's main stock index rose
more than 1 percent on Friday, climbing back above the 14,000
mark in a broad rally led by the mining-heavy materials
 The rally followed four straight losing sessions on the TSX
as investors worried about what impact the unrest in Libya and
the Middle East in general might have on the global recovery as
oil prices rose.
 "The action earlier this week in the markets may now be
perceived as an overreaction, so investors are now jumping in
with both feet," said Elvis Picardo, an analyst and strategist
at Global Securities in Vancouver.
 Commodity stocks, which took a drubbing when the market was
sliding, made strong gains. First Quantum Minerals (FM.TO: Quote) rose
3.1 percent to C$116.40, while Silver Wheaton SLW.TO gained
4.89 percent to C$39.86 and Teck Resources TCKb.TO was up
3.14 percent at C$54.23.
 The Middle East turmoil helped keep gold prices above
$1,400 an ounce [GOL/], but the rise in gold producers was also
helped by improving market sentiment, said Barry Schwartz, vice
president and portfolio manager at Baskin Financial Services.
 "We're seeing lots of dividend increases, lots of
confidence, a lot of upbeat conference calls from Canadian
CEOs, so that's what the market is focused more on," he said.
 Shares of Goldcorp rose 3.49 percent to C$46.00 after the
world's second-largest gold miner by market capitalization
reported better than expected earnings after market close on
Thursday and raised its dividend. [ID:nN24290403]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 184.82 points, or 1.33 percent, at
14,052.13. Eight of the index's 10 main groups were higher,
with the materials sector up 2.5 percent and the energy group
up 1.55 percent.
 The TSX was down 0.5 percent for the week, which was
shortened by a provincial holiday on Monday.
 Energy stocks made gains as the price of oil, the most
sensitive commodity to the Middle East unrest, edged higher,
erasing losses from earlier in the day when Saudi Arabia said
it would increase output to make up for Libyan supply
disruptions. [O/R]
 Suncor (SU.TO: Quote) gained 2.05 percent to C$44.90, while
Canadian Natural Resources (CNQ.TO: Quote) rose 2.74 percent to
 Financials rose 0.77 percent, helped by a strong start to
bank earnings season. [ID:nN24267496]
 National Bank closed at an all-time high, up 1.86 percent
at C$74.97, while Toronto-Dominion Bank (TD.TO: Quote) ended the
session up 2.03 percent at 80.96 and Bank of Nova Scotia
(BNS.TO: Quote) finished 1.1 percent higher at C$60.00.
 Fertilizer producers got a lift from a ratings hike from
Royal Bank of Canada (RY.TO: Quote) and steady corn prices. Potash
Corp (POT.TO: Quote) climbed 3.17 percent to C$58.87, while Agrium Inc
(AGU.TO: Quote) gained 2.93 percent to C$92.69. [ID:nWNAB4530]
 Encana Corp (ECA.TO: Quote), Canada's largest natural gas
producer, agreed to a joint venture at its Jonah natural gas
field in Wyoming, its partner, Northwest Natural Gas Co
(NWN.N: Quote), said on Friday. Encana closed up 0.44 percent at
31.64. [ID:N25300337]
 ($1=$0.98 Canadian)
 (Editing by Rob Wilson)