CANADA STOCKS-TSX climbs on U.S. data, German vote

Thu Sep 29, 2011 5:41pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX rises 100.45 points, or 0.87 percent, at 11,686.32
 * Nine of 10 sectors higher; banks drive gains
 (Adds further analyst comment, detail)
 By Trish Nixon
 TORONTO, Sept 29 (Reuters) - Toronto's main stock market
index rose on Thursday as stronger-than-expected U.S. economic
data and German approval of a beefed-up euro-zone crisis fund
helped ease two of the worst fears hanging over the market.
 But intense intra-day swings highlighted investor anxiety.
The index retreated from an earlier jump of 1.5 percent and at
times traded negative as traders reflected on the big
challenges still ahead for the euro zone as policymakers work
to prevent a crisis that began in Greece from spreading far
beyond Europe. [ID:nL5E7KT2WC]
 "We're in a market right now that's looking for something
to latch on to give it direction," said Julie Brough, vice
president at Morgan Meighen & Associates.
 "At the end of the day, there aren't really resolutions to
the problem. There's inklings of hope, but we've seen so many
of these things in Europe where you make some progress, but
then you don't get to the point where anything's really
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 100.45 points, or 0.87 percent, at
11,686.32. Nine of 10 sectors were higher.
 The financial sector closed 1.9 percent higher, driving the
index's gains. Bank of Nova Scotia (BNS.TO: Quote) was the top
advancer as it jumped 2.4 percent to C$53.70. Toronto-Dominion
Bank (TD.TO: Quote) gained 2 percent to C$75, and Royal Bank of Canada
(RY.TO: Quote) added 1.9 percent to C$48.41.
 Energy issues rose 1 percent, helped by rising oil prices.
Suncor Energy (SU.TO: Quote) rose 2.4 percent to C$27.71, and Cenovus
Energy (CVE.TO: Quote) jumped 3.4 percent to C$33.22.
 Base-metal miners weighed. The TSX's mining sub-group fell
1.5 percent as copper prices added to their monthly rout, down
more than 1 percent on the day and more than 20 percent so far
in September. First Quantum Minerals (FM.TO: Quote) was a top
decliner, down 5 percent at C$14.40. [MET/L]
 Market volatility is likely to remain high as traders react
to European headlines and attempt to gauge the commitment of
governments and institutions as they work to prevent a Greek
 A rebalancing of portfolio holdings as the third quarter
draws to a close could also keep markets volatile.
 "It'll be interesting tomorrow to see what does happen,"
said John Kinsey, a portfolio manager at Caldwell Securities
 "For a lot of the month there was a lot of short covering
and margin calls. That kind of ended the last few days for New
York, but Toronto, because of the more commodity-oriented
weighting that it has, hasn't performed as well."
 Shares of Research in Motion RIM.TO dropped 3.1 percent
to C$21.97. The BlackBerry maker brushed off suggestions on
Thursday that it would discontinue production of its PlayBook
computer tablet as "pure fiction" after an analyst said the
company may be considering an exit from the market.
 Petrobakken PBN.TO shares plunged by more than a fifth on
fears the company may have to suspend its lucrative dividend.
 (Editing by Jeffrey Hodgson)