CANADA STOCKS-TSX climbs as resource prices rise

Tue Oct 28, 2014 4:56pm EDT
 
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* TSX ends up 155.25 points, or 1.07 percent, at 14,624.25
    * All 10 main index sectors advance
    * TD, Suncor are among market's most influential gainers

 (Adds strategist comments, updates prices to close)
    By Alastair Sharp
    TORONTO, Oct 28 (Reuters) - Canada's main stock index rose
more than 1 percent on Tuesday, with higher crude and other
commodity prices helping boost energy and mining companies as
investors returned to buying after a sharp sell-off in recent
weeks.
    All 10 major sectors of the Toronto Stock Exchange's S&P/TSX
composite index notched gains, with heft provided by
heavyweight resource and financial sectors. 
    "This is just investors coming back, refocusing on the
fundamentals and seeing that things aren't so bad," said Craig
Fehr, Canadian market strategist at Edward Jones in St. Louis,
Missouri.
    Oil, gold and copper prices rose on the day, helping
Canada's preponderance of resource-focused companies gain. 
  
    Suncor Energy Inc was the biggest positive driver,
adding 2.2 percent to C$39, while Canadian Natural Resources Ltd
 gained 2.1 percent to C$38.74 and Enbridge Inc 
added 1.9 percent to C$53.26.
    Shares of Canadian uranium miner Cameco Corp jumped
3.8 percent to C$19.57, following news that a town in southwest
Japan became the first to approve the restart of a nuclear power
station. 
    All 48 of the country's nuclear reactors were gradually
taken offline following the Fukushima catastrophe in 2011, the
world's worst nuclear disaster since Chernobyl in 1986.
    "Hopefully this is the catalyst we all have been waiting
for," said David Talbot, analyst at Dundee Capital Markets. 
"But two restarts from 48 reactors isn't going to move the
needle much."
    The index - which ended the day up 155.25 points, or 1.07
percent, at 14,624.25 - has recovered almost 1,000 points since
a correction knocked it off all-time highs earlier this month.
    That slump was fed by sluggish economic growth data, sliding
oil prices and other geopolitical risks.
    "Obviously we were seeing additional worries about Europe
and global growth and Ebola and all these headline risks, but at
the end of the day our view of underlying economic growth and
corporate earnings growth was largely unchanged," Fehr said.
    But Rahul Khasgiwale, an investment director at Standard
Life Investments, wanted more evidence of global recovery before
seeking out Canadian stocks.
    "Canada doesn't feature very prominently in our global
portfolios. We see better opportunities elsewhere," he said.
    Stock markets have been increasingly choppy in recent weeks,
though volatility is still well below historic highs.
    Financials, the index's most heavily weighted sector,
advanced 0.8 percent. Toronto Dominion Bank rose 1.1
percent to C$54.77, and Bank of Nova Scotia added 0.9
percent to C$68.55.
    The U.S. Federal Reserve started a two-day meeting to
discuss monetary policy. Investors largely expect the central
bank to assure markets it is prepared to wait a long time before
raising rates as it ends a massive bond-buying stimulus program.
 

 (Additional reporting by John Tilak, Euan Rocha and Rod Nickel;
editing by Nick Zieminski and Matthew Lewis)