October 1, 2012 / 3:15 PM / 6 years ago

CANADA STOCKS-TSX hits 1-week high as commodities climb

* TSX up 81.23 points, or 0.7 percent, at 12,398.69
    * All 10 sectors stronger

    By Claire Sibonney
    TORONTO, Oct 1 (Reuters) - Canada's main stock index hit its
highest level in more than a week on Monday, starting the new
quarter on positive ground as U.S. economic data surprised to
the upside and investors bet on continued support from central
    The TSX's resource sectors were all higher as commodity
prices gained. Energy shares climbed up 1.1 percent as oil
reversed early losses while materials, home to miners, were up
percent as the price of gold in euros rose to a record high.
    Suncor Energy was up 1.4 percent to C$32.79, Agnico
Eagle advanced 1.1 percent to C$51.55, and First
Quantum Minerals rose 2.2 percent to C$21.40.
    "Commodities are benefiting from QE (quantitative easing)
comments essentially, very dovish central bankers," said
Francois Bourdon, associate chief investment officer at Fiera
Capital Corp in Montreal.
    Chicago Federal Reserve President Charles Evans, a big
booster of the U.S. central bank's policy easing move last
month, said on Monday the Fed can be even more explicit about
what economic conditions will influence its future decisions.
    Meanwhile, data showed U.S. manufacturing grew slightly last
month for the first time since May but euro zone factories
suffered their worst quarter since early 2009, suggesting the
region may struggle to avoid recession. 
    Factory activity in China also contracted, suggesting the
world's No. 2 economy lost momentum for a seventh consecutive
quarter, and boosting hopes for more stimulus there. 
    At 10:55 a.m. (1455 GMT) The Toronto Stock Exchange's
S&P/TSX composite index was up 81.23 points, or 0.7
percent, at 12,398.69. All 10 sectors were stronger, including
financials, up 0.6 percent.
    "It's the start of the month so there's money that needs to
be employed," added Bourdon.
    On Friday, the commodity-rich index closed out the third
quarter with a gain of more than 6 percent, as energy companies
and miners benefited from a strong showing in crude and bullion
    In company news, Magna International Inc, one of the
world's biggest auto parts manufacturers, jumped 2.4 percent to
C$43.51 after it will buy Germany-based Ixetic for about 308
million euros to expand its engine and transmission pumps
    Keyera Corp rose 1.5 percent to C$48.36 after
announcing plans to invest C$210 million to boost recoveries of
ethane and other high-margin natural gas liquids at the Rimbey
gas plant in west central Alberta.
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