TORONTO (Reuters) - Canada’s main stock index closed higher on Tuesday as reports of strong sales of the new BlackBerry device boosted the smartphone maker (BB.TO) and energy stocks rose with oil prices after data showed signs of economic growth in Europe and the United States.
BlackBerry, whose shares jumped 15 percent on Monday, climbed another 6.3 percent after analyst reports indicated robust sales of the new Z10 model in Canada and Britain.
Recovering from a 2-1/2 week low reached the previous session, the market benefited from news that the U.S. services sector expanded again last month, extending a three-year run of growth, and European business optimism hit an eight-month high, suggesting the euro zone economy was starting to recover. <MKTS/GLOB>
Markit’s Eurozone Composite PMI showed business activity across thousands of companies had risen in January to a 10-month high.
“Retail investors are starting to see missed opportunities as they don’t want to miss the boat,” said Arthur Salzer, executive director and chief executive officer of Northland Wealth Management.
“People are feeling better because money is coming into the system, and they are willing to put capital at risk,” he added.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE gained 28.03 points, or 0.22 percent, to 12,745.65. Nine of the 10 main sectors on the index advanced.
”It’s a buy-on-dips mentality,“ said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier. ”People are getting nervous when the market moves up too quickly. So yesterday we had a sell-off and then people started to buy.
“Europe has been the sore point. Any positive news coming out of Europe would be treated well,” he added.
The energy sector gained 0.6 percent, benefiting from higher oil prices. <O/R>
BlackBerry’s stock surged to C$15.94 and helped the information technology sector climb 2.3 percent.
The materials sector, which includes mining stocks, was the lone group to decline, shedding 0.2 percent.
In other company news, Canadian National Railway Co (CNR.TO), the country’s largest rail operator, said it would invest C$1.9 billion ($1.9 billion) in 2013 to upgrade its rail system, improve service and expand business. The stock rose 0.4 percent to C$95.49.
Additional reporting by Euan Rocha; Editing by Dan Grebler