CANADA STOCKS-TSX gains on Potash, banks; gold miners slip

Thu Apr 24, 2014 4:35pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

(Adds strategist comment, updates prices to close)
    By Alastair Sharp
    TORONTO, April 24 (Reuters) - Canada's main stock index rose
slightly on Thursday, helped by a gain in shares of Potash Corp
 after the company's results beat low expectations and
by small increases in heavyweight banking stocks.
    The upward thrust was offset by declines in major gold
miners and an 11.5 percent plunge in Colombia-focused oil
company Pacific Rubiales Energy Corp. 
    With the domestic stock market hitting highs last reached in
mid-2008, stock pickers are taking a more nuanced view in
building positions, resulting in long-maligned sectors such as
energy producing winners and losers in almost equal measure.
    "Investors are becoming much more discerning. You're not
seeing buying across the board," said Elvis Picardo, a
strategist at Global Securities in Vancouver.
    Potash Corp shares rose 1.8 percent to C$39.02 after the
world's biggest fertilizer company beat profit expectations in a
tough quarter. 
    "Today's news on Potash is a classic example," Picardo said.
"People were bearish on that name for quite a while, so the bar
was low and the company came out and beat expectations."
    The Toronto Stock Exchange's S&P/TSX composite index
 ended up 20.86 points, or 0.14 percent, at 14,554.25.
Eight of its 10 main sectors notched gains. 
    But Barrick Gold fell 1.7 percent at C$19.25, and
Goldcorp Inc was down 0.7 percent at C$27.08.
    Canada has been one of the best performing markets globally
since the start of the year. On Wednesday the index hit
14,587.09, its strongest level since mid-2008.
    "We're noticing strong, large-cap names in Canada are moving
very strongly to the upside," said Sid Mokhtari, a market
technician at CIBC World Markets. "Canada was unloved for quite
some time, and the big game changer is that the Canadian dollar
is weak. That is going to benefit Western Canada."
    Energy companies were mixed. Suncor Energy Inc fell
1 percent at C$40.96; Husky Energy Inc shed 1.6 percent
at C$35.74; and Talisman Energy Inc slipped 0.8 percent
to C$11.81.
    Pipeline company TransCanada Corp moved 1.1 percent
higher, to C$50.38, and Enbridge Inc was up 0.3 percent
at C$52.00.
    Among the financial stocks helping the index stay positive,
insurer Manulife Financial Corp gained 0.7 percent to
C$20.75 and Bank of Nova Scotia added 0.3 percent to
C$65.59.

 (Editing by Chizu Nomiyama, Nick Zieminski and Leslie Adler)