CANADA STOCKS-TSX rises on Europe relief, ends quarter lower

Wed Jun 30, 2010 4:36pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* TSX rises 30.59 points, or 0.27 percent, at 11,294.42.

* All 10 sectors end higher (Updates to close)

By Claire Sibonney

TORONTO, June 30 (Reuters) - Toronto's main stock index bounced higher on Wednesday following two days of steep falls as investors scooped up cheaper shares after fears of a funding crisis for European banks eased and U.S. data showed improved business activity.

Among heavyweight gainers, Canadian Natural Resources CNQ.TO jumped 0.8 percent to C$35.33, Bank of Montreal BMO.TO added 0.7 percent to C$57.74, and Barrick Gold Corp ABX.TO shot 1.9 percent higher to C$48.32.

"After two horrific down days, you'd expect a bounce," said John Kinsey, a portfolio manager at Caldwell Securities.

Market sentiment was boosted partly by news that the European Central Bank said commercial banks don't have to borrow as much as had been expected, easing concerns about how they would repay large emergency loans. [ID:nLDE65T0VB]

Investors digested a mixed bag of economic data: U.S. Midwest business activity grew more than expected, helping to offset a weak U.S. private sector jobs report, but Canadian GDP figures for April were flat. [ID:nN30395701] [ID:nN30434455]

Adding to investors' nerves about the shaky global economic recovery and capping the index's gains, commodity prices weakened and Moody's Investors Service announced it may cut Spain's Aaa debt rating. [ID:nN30242422] [O/R] [MET/L] [GOL/]   Continued...