CANADA STOCKS-TSX rises on optimism about economic recovery

Mon Jul 26, 2010 4:29pm EDT
 
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* TSX up 31.86 points, or 0.27 percent, at 11,746.07

* Seven of 10 sectors higher

* Weak gold miners limit gains (Updates to close, adds quotes)

By Jennifer Kwan

TORONTO, July 26 (Reuters) - Toronto's main stock index ended higher on Monday as strong U.S. corporate earnings and home-sales data boosted investor optimism about economic recovery.

The market mood was buoyed especially by FedEx Corp's (FDX.N: Quote) move to raise its quarterly and full-year earnings forecasts. For details, see [ID:nN26199061]

Economically sensitive financial issues gained 0.9 percent, with Royal Bank of Canada (RY.TO: Quote) up 0.8 percent at C$52.45, Bank of Montreal (BMO.TO: Quote) rising 1.7 percent to C$62.85, and Toronto-Dominion Bank (TD.TO: Quote) up 1.4 percent at C$72.92.

Strength in the big oil and gas sector, up 0.7 percent, also helped the index higher. Suncor Energy (SU.TO: Quote) rose 0.9 percent to C$33.68, and Canadian Natural Resources (CNQ.TO: Quote) was up 0.2 percent at C$36.70.

"We got really upbeat guidance from FedEx," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services, who noted that the rosy outlook followed strong earnings from United Parcel Service Inc (UPS.N: Quote) earlier this month.   Continued...