June 12, 2012 / 9:07 PM / 7 years ago

CANADA STOCKS-TSX rallies on gold miners, Bombardier

* TSX ends up 95.52 points, or 0.8 pct, at 11,497.30
    * Gold miners, oil and gas firms lead gains
    * Bombardier Inc rises 6 pct on jet deal
    * Markets nervous ahead of Greek election

    By Jon Cook	
    TORONTO, June 12 (Reuters) - Canadian stocks on Tuesday
posted their first gain in four sessions as gold mining and
energy shares rallied as well as a windfall deal for Bombardier
Inc offset concerns about Europe's lingering debt crisis.	
    Stocks on world markets edged higher as battered shares
attracted traders, but Spanish bond yields were near euro-era
highs on doubts about Madrid's bank bailout and Sunday's
election in Greece. 	
    "Overseas markets were up on views that more pro-growth
programs will come to help the euro zone in its current mess,"
said Pat McHugh, Canadian equity strategist at Manulife Asset
Management. "There's nothing crazy on the upside or crazy on the
    Eight of Canada's 10 main sectors finished higher. The
heavily weighted materials and energy sectors, up 1.8 percent
and 1.1 percent, respectively, were the session's top
performers, climbing as gold and U.S. oil prices rebounded after
Monday's sell-off.  	
    The most influential gainers included: Suncor Energy
, up 2.3 percent to C$28.97; Potash Corp, which
rose 2.2 percent to C$39.71; Talisman Energy, up 3.9
percent at C$11.23; Goldcorp Inc, up 1.4 percent at
C$40.46, and Eldorado Gold Corp, which jumped 4 percent
to C$12.48.	
    A mega jet deal involving Bombardier Inc also
helped keep Canadian stocks in positive territory. Bombardier
shares jumped 6 percent to C$3.87 on Tuesday after news that the
Canadian planemaker had won a $7.3 billion aircraft order with
NetJets, a private jet-sharing company owned by Warren Buffett's
Berkshire Hathaway Inc. 	
    "Their business jet business was decent and this is just a
cherry on top," said Paul Hand, managing director at RBC Capital
Markets. "It's the commercial project that is the big question
mark and has been the drag on the company."    	
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 95.52 points, or 0.84percent, at 11,497.30.
It briefly dipped into negative territory, hitting a session low
at 11,385.50.	
    Optimism was tempered by doubts over a 100 billion euro
($124.57 billion) bailout for Spain's banks pushed Spanish
government bond yields to their highest since the euro was
launched in 1999.	
    Raising the stakes in Europe's debt crisis, Austria's
finance minister said Italy - the euro zone's third-largest
economy - may need a financial rescue because of its high
borrowing costs. 	
    Despite the European headwind, the Canadian financial index
rose 0.6 percent. Gains were led by the big banks, with Royal
Bank of Canada up 1.1 percent to C$50.52, Bank of
Montreal rising 1.3 percent at C$54.56, and
Toronto-Dominion Bank edging up 0.6 percent to C$78.10.	
    Concerns that the Greek election on June 17 would bring to
power parties opposed to its current bailout plan and force a
disorderly exit from the euro zone were rekindled by a report
that European Union officials were considering ways to manage
the fallout.	
    "We really do need to see what happens out of the Greece
situation," said McHugh, adding that markets could sell off
further if an anti-bailout party triumphs. "Right now people
haven't priced anything into this Greek election."	
    In other company news, shares of Agrium Inc rose
4.4 percent to C$84.87 after the fertilizer maker said on
Tuesday it expects its second-quarter earnings to be at or near
the top of its forecast range due to higher prices for some of
its wholesale fertilizer products. 	
    Fortress Paper Inc shares tumbled more than 7
percent to C$22 after rating agency Raymond James cut the
specialty paper producer's share price target on Tuesday to C$40
from C$46, a day after the Vancouver-based firm said it was
looking at alternatives to arrest sliding sales. 
    Paramount Resources Ltd's shares shed 2.6 percent
to C$25.75 after Standard & Poor's lowered its credit rating on
the Canadian natural gas producer because of weak gas prices and
the company's hefty capital spending plans.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below