September 10, 2012 / 3:52 PM / 6 years ago

CANADA STOCKS-TSX pushes higher as miners boosted by China hopes

* TSX up 11.37 points, or 0.09 percent, at 12,279.38
    * Energy companies, banks keep index positive
    * Nordion plummets 40 pct after losing arbitration case

    By Alastair Sharp
    TORONTO, Sept 10 (Reuters) - Canada's main stock index
pushed higher on Monday as the mining sector - excluding gold-
rose on hopes China's infrastructure drive will boost demand for
commodities needed to make steel and other construction
    Canadian stocks added to sharp gains from late last week as
energy companies and banks showed renewed strength.
    Talisman Energy jumped 3.1 percent to C$14.30 after the
independent oil explorer said its CEO had stepped down, which
investors took as a sign the company could be looking for a
    The overall rise went against the tide of global markets,
which were largely subdued ahead of a German ruling on the euro
zone's new bailout fund, Dutch elections and potential new
stimulus from the U.S. Federal Reserve. 
    Diversified miner Teck Resources Ltd and base
metal producer Inmet Mining Corp moved higher after
sharp rallies on Friday.
    "Those are massive rallies on the fact that this time China
is actually going to do a stimulus that will stick and require
commodities," said Barry Schwartz, a portfolio manager at Baskin
Financial Services.
    Weak Chinese trade data on Monday underlined the likelihood
of more Beijing-backed spending to deal with the damage done to
the world's second largest economy by firms cutting production,
inventories and imports in the face of anemic global demand.
    Beijing has given the green light to infrastructure projects
worth more than $150 billion to resuscitate its steel industry
and pull China's economy out of a slowdown. 
    At 10:50 a.m. (1450 GMT) the Toronto Stock Exchange's
S&P/TSX composite index was up 11.37 points, or 0.09
percent, at 12,279.38. The rise pushed the index slightly higher
than the four-month high hit on Friday.
    Shares of Nordion Inc plummeted more than 40 percent after
the provider of medical isotopes suspended its quarterly
dividend after an arbitration panel rejected its claim for
damages from its main supplier. 
    "It's an upsetting situation and hopefully they can recover
from that," Schwartz said.
    Most of the other leading decliners on the index were gold
miners, which had performed well in the past month. The price of
bullion is near a six-month high.
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