CANADA STOCKS-TSX clocks 6th day of gains on U.S. data, Potash results

Thu Apr 25, 2013 4:51pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX rises 59.08 points, or 0.48 percent, to 12,329.51
    * Nine of 10 main index sectors advance
    * Potash Corp climbs 2.7 percent after earnings beat
    * Open Text jumps more than 12 percent after results

    By John Tilak
    TORONTO, April 25 (Reuters) - Canada's main stock index
advanced for a sixth straight session on Thursday, helped by
resources sectors as U.S. economic data and a
stronger-than-expected earnings performance from fertilizer
producer Potash Corp buoyed sentiment.
    Investors were encouraged by data showing the number of
Americans filing new claims for unemployment benefits fell last
week, offering reassurance that the bottom is not falling out of
the U.S. labor market. 
    Thanks to its string of gains, the Toronto index, which
posted its biggest jump in more than eight months on Wednesday,
has erased almost all the losses incurred during a massive
commodities-led rout earlier this month.
    "Valuations of a number of commodity producers are at
bargain levels," said Elvis Picardo, strategist and vice
president of research at Global Securities in Vancouver.
    "They are attractive enough to entice investors who are
taking a longer-term view of the situation," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 59.08 points, or 0.48 percent, at 12,329.51,
hitting its highest point since a big selloff on April 15.    
Nine of the 10 main sectors on the index were higher.
    Despite the gains, the index is still down 0.8 percent on
the year, compared with a 10.7 percent rise for the S&P 500.
    "The TSX is staging a bit of a recovery," said Keith G.
Richards, portfolio manager and technical analyst at ValueTrend
Wealth Management. "I see this near-term rally as a near-term
rally, and that's all."
    He said he expects weakness in banks and commodities to hold
the index back over the next couple of months.
    A 2.7 percent gain in Potash Corp to C$41.72 and a rise in
gold-mining shares lifted the index's materials sector 1.8
    The price of bullion posted its biggest daily rise since
June 2012 as physical buyers kept scooping up the metal at
prices viewed as a bargain after the recent selloff. 
    Potash said it was abandoning efforts to take over Israel
Chemicals Ltd because of strong opposition in Israel.
The fertilizer giant also reported a stronger-than-expected 13
percent rise in profit after renewed sales to China and India.
    "Potash has got near-term upside," Richards said. "Positive
news on the stock is going to push it a bit."
    Energy shares rose 0.7 percent, reflecting a rise in the
price of oil. Shares of Imperial Oil Ltd climbed
1.1 percent to C$40.51 after Canada's No. 2 oil producer and
refiner reported a first-quarter profit. 
    Financials, the index's most heavily weighted sector, gained
0.2 percent.
    Business software maker Open Text Corp reported a
25 percent rise in third-quarter adjusted profit as its
cloud-based services business expanded. Open Text stock added
12.4 percent to C$64.91, and the index's information technology
sector was up 2.7 percent.