CANADA STOCKS-TSX ends higher as commodity prices climb

Mon Oct 25, 2010 4:59pm EDT
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   * TSX ends up 62.40 points at 12,663.58
 * Commodity prices supported by falling greenback
 * Six of 10 index sectors advance
 (Adds company news details)
 By Jennifer Kwan
 TORONTO, Oct 25 (Reuters) - Toronto's main stock index
ended higher for a second straight session on Monday as
commodity prices got a boost from a weak U.S. dollar, which
fell on expectations the U.S. Federal Reserve would engage in
further monetary easing.
 Resources, which are largely priced in U.S. dollars, surged
on a selloff in the greenback after this past weekend's Group
of 20 leaders meeting in South Korea produced few firm policy
initiatives, giving investors little reason to stop selling the
U.S. currency. [ID:nTOE69M004]
 "The weakness in the U.S. dollar stems from a general view
that the greenback is headed even lower from these levels and
the G20 conference over the weekend hasn't done much to
alleviate concerns about the ongoing weakness in the U.S.
dollar," said Elvis Picardo, an analyst and strategist at
Global Securities in Vancouver.
 The greenback fell broadly on Monday as traders sold it on
the view that the U.S. central bank was ready to turn on the
printing press again next week. [FRX/]
 The Fed is expected to launch a second round of asset
purchases at its Nov. 2-3 meeting, a process intended to push
down interest rates and one that would make the U.S. dollar
less attractive than higher-yielding currencies.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended the session up 62.40 points, or 0.50 percent,
at 12,663.58. It peaked at 12,692.59, its strongest level since
Oct. 14.
 The blue chip S&P/TSX 60 index .TSE60 closed 2.78 points
higher, or 0.38 percent, at 728.68.
 Six of the TSX's 10 main sectors were higher, with a 1.3
percent advance in the heavily weighted materials group.
 The Thomson Reuters-Jefferies CRB index .CRB, a global
commodities benchmark, was up more than 1 percent as the price
of key resources such as oil, gold and copper rose. [O/R]
[GOL/] [MET/L]
 Teck Resources TCKb.TO jumped 1.7 percent to C$46.26,
while Canadian Natural Resources CNQ.TO advanced 0.1 percent
to C$36.71, and Goldcorp G.TO pushed up 0.8 percent to
 "There's strength in commodities across the board and
that's translating into a stronger TSX on the day," said
 Copper miner Equinox Minerals EQN.TO added 0.52 percent
to C$5.81 after it said it would buy Australian-listed Citadel
Resource Group CGG.AX for $1.23 billion. The deal could give
Equinox the same copper output as BHP Billiton's Olympic Dam
mine, the world's fourth-largest deposit. [ID:nSGE69N031]
 TMX Group X.TO, the parent of the Toronto Stock Exchange,
climbed 3.8 percent to C$33.30 after news the Singapore
Exchange SGXL.SI had agreed to a $8.3 billion takeover of
Australia's ASX Ltd ASX.AX to create Asia's fourth-largest
stock exchange. [ID:nSGE69N02J]
 Shubha Khan, an analyst at National Bank Financial, said
the news "could mean global exchange mergers might be back on
the agenda," a key reason why shares of TMX rose on Monday.
 The TSX's information technology sector rose 1.4 percent,
boosted by Research In Motion RIM.TO, up 5.2 percent at
C$52.89, as it demonstrated its BlackBerry PlayBook tablet
computer at a conference.
 ($1=$1.02 Canadian)
 (Reporting by Jennifer Kwan; editing by Rob Wilson)