CANADA STOCKS-TSX surges nearly 3 pct on euro-zone hopes

Tue Sep 27, 2011 11:17am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX rises 334.64 points, or 2.86 pct, to 12,041.38
 * Main index closed up more than 2 pct on Monday
 * All 10 main index sectors higher
 By John McCrank
 TORONTO, Sept 27 (Reuters) - Toronto's main stock market
index surged nearly 3 percent on Tuesday morning, building on a
rally that began late in Monday's session as optimism mounted
that a plan to ease the euro-zone's debt crisis could prevent a
global recession. [ID:nL3E7KR1JI]
 The Toronto Stock Exchange sank to a 14-month low early on
Monday before European leaders said they would beef up the
euro-zone's rescue fund to contain the debt crisis, propelling
the index to close up more than 2 percent. [ID:nS1E78P1QA]
 Miners and oil issues led the gains on Tuesday as commodity
prices rose.
 Teck Resources TCKb.TO was up 6.54 percent at C$32.95 and
Goldcorp (G.TO: Quote) was up 2.12 percent at C$48.69. Suncor Energy
(SU.TO: Quote) gained 4.01 percent to C$28.79, while Canadian Natural
Resources (CNQ.TO: Quote) was up 2.19 percent at C$70.07.
 U.S. crude oil was up more than $3.00 at $83.53, while the
price of spot gold XAU= rose as much as 3.1 percent to
$1,676.69 an ounce. [O/R] [MET/L]
 Despite the bounce-back in commodity prices from their
recent rout, some market watchers were waiting for more clarity
on the euro-zone plan and expecting more market volatility in
the meantime.
 "It's nice to see these bounces," said Gavin Graham,
president at Graham Investment Strategy. "The problem is it's
all based on hope rather than reality."
 He said that even if Greek politicians are able to enact
all the austerity measures being asked of them, the country
would still likely default. [ID:nL5E7KR1W9]
 At 10.55 a.m. (1455 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 334.64 points, or 2.86
percent, at 12,041.83. All of the 10 index sectors were higher,
with the mining-heavy materials sector up 3.32 percent and the
energy sector up 4.22 percent.
 Financial stocks were also higher, with the sector up 2.16
percent. Bank of Nova Scotia (BNS.TO: Quote) was up 3.33 percent at
C$54.04, and Royal Bank of Canada (RY.TO: Quote) was up 1.58 percent
at C$48.74.
 Shares of Ivanhoe Mines (IVN.TO: Quote) were up 17 percent at
C$17.57 after Rio Tinto (RIO.AX: Quote) (RIO.L: Quote) raised its stake in
the company amid tensions over Mongolian plans to renegotiate a
landmark deal related to the development of the Oyu Tolgoi
copper-gold project in Mongolia. [ID:nS1E78Q0GE]
 BlackBerry maker Research In Motion RIM.TO rose 5.01
percent to C$23.46 on market speculation that activist investor
Carl Icahn had taken a stake in the company. [ID:nS1E78Q0NL]
 Shares of Hanfeng Evergreen HF.TO tumbled 18 percent to
C$2.29 after the Chinese fertilizer maker reported quarterly
results that missed expectations, partly due to a
maintenance-related shutdown at one of its plants.
 ($1=$1.02 Canadian)
 (Editing by Peter Galloway)