CANADA STOCKS-TSX hits 7-week high as sentiment for resources brightens

Mon Jul 22, 2013 11:23am EDT
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* TSX rises 57.74 points, or 0.46 percent, to 12,742.87
    * Seven of the 10 main index sectors advance
    * Gold miners jump 5 percent as bullion climbs
    * Goldcorp has biggest positive impact on index
    * Maple Leaf Foods advances on plans to sell farms

    By John Tilak
    TORONTO, July 22 (Reuters) - Canada's main stock index rose
to its highest level in seven weeks on Monday as higher
commodity prices lifted sentiment on the natural resource-heavy
    The bullion price jumped more than 2 percent to a one-month
high, helped by weakness in the U.S. dollar and by a lessening
of concern that the U.S. Federal Reserve will quickly dial back
its stimulus program. The Toronto index's gold-mining sector was
up almost 5 percent.
    Brent crude also climbed, supporting shares of oil
and gas producers. 
    "We're seeing a little bit of a recovery in the commodities
sector," said David Cockfield, managing director and portfolio
manager at Northland Wealth Management. 
    "People are jumping on the oils," he added. "I'm not
convinced that we've turned the corner yet, but obviously some
people are."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 57.74 points, or 0.46 percent, at 12,742.87,
after touching 12,749.17, its highest point since May 30.
    The appetite for Canadian stocks has been battered this year
by a commodities slump, but there have been signs of
strengthening and the index has posted four straight weeks of
gains. Monday's rise was the fourth session of gains in a row
and the index outperformed the S&P 500 index last week.
    It may still be too early to say that sentiment for Canadian
equities has shifted, Cockfield said. "But let's say that the
first robin has landed. It's the first indication that things
may be changing."
    Seven of the 10 main sectors on the index were higher on
Monday. The materials sector, which includes mining stocks,
jumped 3 percent, boosted by soaring shares of gold miners.
    Goldcorp Inc shot up 5.3 percent to C$29.83, and had
the biggest positive influence on the index. Barrick Gold Corp
 jumped 5.9 percent to C$18.17.
    Shares of energy companies climbed 0.2 percent. Enbridge Inc
 added 0.5 percent to C$46.81, and Suncor Energy Inc
 rose 0.2 percent to C$33.06.
    Financials, the index's most heavily weighted sector, gained
0.3 percent. Toronto-Dominion Bank was up 0.5 percent,
at C$88.05.
    In company news, meat processor Maple Leaf Foods Inc
 said it plans to sell its Ontario turkey farms and
hatchery, sending its shares up 1.7 percent to C$15.71.