TSX rebounds to higher close, led by Teck

Thu Apr 22, 2010 5:24pm EDT
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By Cameron French

TORONTO (Reuters) - Toronto's main stock index rebounded from a steep early drop to finish higher on Thursday, rising for the fourth straight session as investors brushed off early worries about debt-stricken Greece and drew confidence from strong U.S. earnings.

Financial stocks that fell early in the session trimmed their losses and ended almost flat, while a snapback in oil prices drew investors to oil and gas issues, resulting in a 0.33 percent gain for the index's key energy sector.

Teck Resources TCKb.TO led the materials sector higher and was the strongest major stock on the index, rising 5.5 percent to C$43.99. The diversified miner said it would reinstate its dividend, which it cut in late 2008 while awash in debt.

Led by Teck, the materials subgroup rose 0.79 percent, also helped by strong gold-mining stocks such as Barrick Gold (ABX.TO: Quote), which rose 1.8 percent to C$40.18.

"The market seems to be once again focusing on the strong fundamentals, the strong earnings growth, and that's really helped create a big turnaround in sentiment on the day," said Elvis Picardo, strategist at Global Securities in Vancouver.

Strong quarterly profits from U.S. companies such as Starbucks (SBUX.O: Quote) and SanDisk SNDK.O gave a boost to sentiment in both Canadian and U.S. markets.

Among financials, Canadian Imperial Bank of Commerce (CM.TO: Quote) rose 0.9 percent to C$76.25, while Imperial Oil (IMO.TO: Quote) helped lead energy producers, rising 1.9 percent to C$42.25.

The telecoms subgroup gained 0.84 percent, boosted by Rogers Communications (RCIb.TO: Quote), which rose 2 percent to C$35.27, and BCE Inc (BCE.TO: Quote), which climbed 1.4 percent to C$30.70.   Continued...