CANADA STOCKS-TSX climbs to near three-year high as Canadian Natural jumps

Wed Feb 19, 2014 4:46pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX rises 42.26 points, or 0.30 percent, to 14,119.73
    * Five of 10 main index sectors advance
    * Canadian Natural up 3.7 percent after acquisition move
    * Sherritt drops after posting loss, cutting dividend

    By John Tilak
    TORONTO, Feb 19 (Reuters) - Canada's main stock index hit
its highest level in almost three years on Wednesday, ending an
11th straight session higher, as shares of Canadian Natural
Resources Ltd jumped after the company said it would
acquire some natural gas assets.
    Devon Energy Corp said it would sell some
liquids-rich natural gas assets to Canadian Natural, Canada's
No. 1 independent oil producer, for about $2.8 billion, a move
that helped lift shares across the energy sector.
    That offset weak economic data from the United States and
minutes from a Federal Reserve meeting that showed policymakers
supporting a predictable wind-down of the central bank's
asset-purchase program. 
    The Toronto market recorded its 11th straight daily gain,
with the rally drawing strength from a rebound in investor
sentiment and a pickup in the natural resource sectors.
    "Sentiment seems to be improving," said Youssef Zohny, a
portfolio manager at Stenner Investment Partners, a multifamily
office within Richardson GMP. "I see the Canadian market
outperforming the U.S. market (in 2014)."
    "We're seeing some rotation into resources this year," he
added. "A lot of the commodity sectors are doing better than
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 42.26 points, or 0.30 percent, at 14,119.73.
Five of the 10 main sectors on the index were higher.
    Shares of energy companies climbed 1 percent. Canadian
Natural's 3.7 percent jump, to C$40.63, was the highlight in the
group. Suncor Energy Inc added 1 percent to C$36.98.
    Financials, the index's most heavily weighted sector,
advanced 0.6 percent, with Royal Bank of Canada adding
1.3 percent to C$72.39.
    But the materials sector, which includes mining stocks, gave
back 1.1 percent. Goldcorp Inc dropped 2.8 percent to
C$29.50, and Barrick Gold Corp slipped 1.8 percent to
    In other company news, Sherritt International Corp 
posted a quarterly loss and slashed its quarterly dividend. The
stock shed 12 percent to C$3.02.