October 16, 2012 / 9:19 PM / 6 years ago

CANADA STOCKS-Resources power TSX higher as earnings lift hopes

* TSX up 177.74 points, or 1.45 percent, at 12,407.70
    * All 10 main index sectors rise
    * Energy and mining stocks lead rally

    By Solarina Ho
    TORONTO, Oct 16 (Reuters) - Canada's main stock index
finished more than 1 percent higher on Tuesday with investor
confidence bolstered by stronger-than-expected U.S. earnings,
economic data and firmer commodity prices.
    Mining and energy stocks were up 2.5 percent and 1.75
percent, respectively, as gold and copper prices came off
one-month lows. The index's materials group, home to miners, was
up 2.08 percent.   
    "For a change, it's a sea of green," said Elvis Picardo,
strategist and vice president of research at Global Securities
in Vancouver. "When that happens, the TSX does tend to benefit
disproportionately. What's been holding the index back for the
longest time has been this fear of the many risks out there.
    "It's basically an improvement on sentiment ... It's a bunch
of little things that have come together to contribute to a
sharp rise in the TSX."
    Miner Barrick Gold Corp was the biggest index
mover, jumping 3.21 percent to C$39.21, followed by Suncor
Energy, which climbed 2.41 percent to C$33.16, and
fellow oil producer Canadian Natural Resources, which
rose 2.62 percent to end at C$30.89.
    Gold prices snapped two days of hefty losses, while U.S.
crude seesawed its way higher, helped by a fall in the U.S.
dollar against the euro and solid gains in U.S. equities.
    Royal Bank of Canada and Toronto-Dominion Bank
 completed the top five index movers, with RBC up 1.08
percent at C$57.86, and TD advancing 1.03 percent to C$82.29.
The overall financial group was up 1.09 percent.
    Financials, energy and materials shares make up about three
quarters of the index.
    The market tracked global shares, which rose for a second
day, as better-than-expected earnings from U.S. corporate
bellwethers Johnson & Johnson and Goldman Sachs Group
 helped alleviate some concerns about a slowing global
economy and raised expectations for the rest of the reporting
    The Toronto Stock Exchange's S&P/TSX composite index
 ended up 177.74 points, or 1.45 percent, at 12,407.70.
All 10 key sectors of the index were in positive territory.
    Canadian National Railway was also a top gainer,
climbing 1.73 percent to C$88.77. The overall industrials group
was up 1.4 percent. 
    Valeant Pharmaceuticals International rose 3.11
percent to finish at C$56.96, which helped give a 1.77 percent
lift to the index's health sector.
    Data on Tuesday showed Canadian factory sales bounced back
in August with an unexpected 1.5 percent jump after a two-month
slump and that foreign investors increased their purchases of
Canadian securities in August to C$6.90 billion ($7.04 billion)
from C$6.67 billion in the previous month. 
    "Recently some of the data that's come out has been a bit
more supportive of the recovery," said Gareth Watson, vice
president at Richardson GMP.
    In corporate news, Loblaw Cos Ltd, Canada's largest
grocer, said on Tuesday that it planned to cut about 700 head
office and administrative jobs over the next three weeks in a
move aimed at reducing costs. Its shares climbed 2.48 percent to
finish at C$34.72.
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