December 11, 2012 / 10:38 PM / 6 years ago

CANADA STOCKS-TSX hits 1-mth high as German data lifts financials

* TSX rises 51.89 points, or 0.42 percent, to 12,282.36
    * Index hits highest level since Nov. 7
    * All 10 main sectors make gains

    By John Tilak
    TORONTO, Dec 11 (Reuters) - Canada's main stock index hit a
one-month high on Tuesday as positive German economic data and
hope for a solution to Washington's fiscal deadlock boosted
financial and energy shares.
    A gauge of German analyst and investor morale rose sharply
in December, fueling hopes that Europe's largest economy will
avoid recession this winter. 
    "It shows that there is some prospect that the European
economy may be starting to gain a little bit of traction. It's
better than the numbers we've been seeing," said Rick Hutcheon,
president and chief operating officer at RKH Investments.
    Hutcheon said Canadian economic data was also encouraging. A
Statistics Canada report showed the country's trade deficit
unexpectedly shrank in October as imports fell to a 15-month low
while exports increased. 
    The Toronto Stock Exchange's S&P/TSX composite index
 ended up 51.89 points, or 0.42 percent, at 12,282.36.
That was above its moving average for the last 50, 100 and 200
days. Earlier in the session it hit 12,306.82, its highest point
since Nov. 7. All 10 main sectors on the index closed higher.
    "Today is a fairly decent example of a broad uptick," said
Youssef Zohny, portfolio manager at Stenner Investment Partners,
a unit of Richardson GMP in Vancouver.
    Zohny pointed to the culmination of a two-day U.S. Federal
Reserve meeting on Wednesday as a positive force. "Some
investors are looking at that positively, potentially a little
more clarity on the direction of monetary policy and their view
of the economy," he said.
    Though no concrete signs of progress were made public on
Tuesday, a quickening in the pace of U.S. talks to avoid the
"fiscal cliff" of looming spending cuts and tax jumps was also
bullish for the market. 
    A failure to avert "the cliff" would threaten a recession in
Canada's biggest trading partner.
    Potash Corp had the biggest positive effect on the
index, gaining 2.5 percent to C$40.36, its second straight day
of gains, which brought the stock to its highest level since
Oct. 22.
    Shares in Research In Motion  rose 5.8
percent to C$12.42 after Cormark Securities raised its price
target on the stock to $16 from $12, citing an improving outlook
for the embattled BlackBerry maker. 
    The financial sector, the index's biggest, rose 0.7 percent.
    Royal Bank of Canada gained 0.6 percent to C$58.87,
Bank of Nova Scotia added 1 percent at C$56.50, and
Toronto-Dominion Bank ended 0.5 percent higher at
    The energy sector climbed 0.2 percent, helped by higher oil
prices ahead of a meeting of OPEC countries. In the group,
Canadian Natural Resources Ltd rose 1.1 percent to
C$28.32 and Enbridge Inc gained 0.5 percent to C$41.88.
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