TSX powers higher on resources, Potash rally

Tue Nov 17, 2009 5:14pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Jennifer Kwan

TORONTO (Reuters) - Toronto's main stock index rose on Tuesday as commodity prices ticked higher and shares of Potash Corp of Saskatchewan rallied after billionaire investor George Soros's hedge fund raised its stake in the company.

Potash Corp topped the list of influential gainers, rising 7 percent to C$116.50. The rise helped to boost the broader materials sector 2.1 percent, with fertilizer producer Agrium Inc also higher by 3.8 percent at C$58.55.

The news "would certainly be a bullish indication of how Mr. Soros feels," said Bruce Latimer, a trader at Dundee Securities.

"He's obviously a sophisticated investor. If he's willing to take a position or a gamble on a significant position on a stock it might encourage other people to look that way and perhaps follow suit," Latimer said.

Strength in commodity-linked shares came as the price of oil settled above $79 a barrel, while bullion and base metals prices were firm.. Suncor Energy rose 2.2 percent and Barrick Gold 2.9 percent.

The S&P/TSX composite index finished the day up 117.74 points, or 1.02 percent, at 11,630.00, closing higher for a third straight session. Earlier, it touched its highest level since late September.

The market is now within striking distance of its 2009 high of 11,648.55. A move above this would bring it to levels not seen since October of last year when the global financial crisis was in full swing.

"A lot of people look at charts as reference points so 11,650 on the TSX is basically what has capped the market for the last two or three months. A break of that would confirm short covering and fresh buying from technical funds," said Francis Campeau, broker at MF Global Canada, in Montreal.   Continued...