CANADA STOCKS-TSX gains 2 pct on week as resource stocks push higher

Fri Oct 25, 2013 4:52pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* TSX up 74.67 points, or 0.56 percent, at 13,399.42

* U.S. stimulus and Chinese growth boost Canada's resource stocks

By Alastair Sharp

TORONTO, Oct 25 (Reuters) - Canada's main stock index gained 2 percent this week, with Friday's broad-based gains led by heavyweight energy and banking stocks as the index extended its two-year peak.

Investors are growing optimistic about the resource-rich index amid the increased likelihood of extended monetary stimulus in the United States and renewed Chinese growth.

"The investment theme for Canadian stocks is different now versus just a few weeks ago," said Marcus Xu, a portfolio manager at MY Capital Management in Vancouver.

After suffering from ties to poorly-performing emerging markets, the commodities sectors are now likely to benefit as investors seek to make use of excess liquidity, he said.

"When liquidity is really high, eventually it is going to drive a rally in commodities," Xu said. "I'm surprised it didn't happen earlier."

The Toronto Stock Exchange's S&P/TSX composite index ended up 74.67 points, or 0.56 percent, at 13,399.42. It gained 2 percent for the week, adding to gains of 1.9 percent and 1 percent in the prior two weeks.   Continued...