August 1, 2013 / 3:15 PM / 6 years ago

CANADA STOCKS-Economic data, earnings fuel TSX gains

* TSX rises 113.24 points, or 0.91 percent, to 12,599.88
    * Eight of 10 main index sectors advance
    * Suncor gains after results, has biggest influence on
    * Barrick, Enbridge jump after quarterly reports

    By John Tilak
    TORONTO, Aug 1 (Reuters) - Canada's main stock index rose on
Thursday, driven by strong economic data from China, Europe and
the United States, as well as gains in bellwethers such as
Suncor Energy Inc and Barrick Gold Corp after
they reported results.
    An industry report showed that the pace of growth in the
U.S. manufacturing sector accelerated in July to the highest
level in two years as new orders surged, supporting the view the
economy will pick up in the second half of the year.
    Separate data showed the euro zone was slowly starting to
emerge from recession, while business surveys indicated China's
manufacturing sector was stabilizing.
    The improving global economic outlook lifted commodity
prices and boosted investor sentiment in the resource-sensitive
Canadian market.
    Also on Thursday, the European Central Bank that it will not
tighten monetary policy until well into next year, a day after
the U.S. Federal Reserve said it will maintain the pace of its
bond-buying program for now.  
    Investors relished the combination of positive economic data
and a lack of indication of imminent central bank policy
     "An improving economy, especially in Europe, has given
markets a really big boost," said Colin Cieszynski, senior
market analyst at CMC Markets Canada.
    "It looks like we might be into a Goldilocks-type scenario,
where the economy is starting to do better, but not so well that
it pushes the central banks to tighten," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 113.24 points, or 0.91 percent, at 12,599.88.
    Eight of the 10 main sectors on the index were higher.
    Shares of energy producers shot up 1.8 percent, benefiting
from earnings reports and higher oil prices.
    Suncor posted a second-quarter profit that missed analyst
expectations by a penny, reflecting factors including the
precautionary shutdown of third-party pipelines due to flooding
in northern Alberta. Shares of Suncor, Canada's largest energy
company, climbed 3.2 percent to C$33.50 and were the biggest
positive influence on the market. 
    Enbridge Inc, Canada's largest pipeline company, 
reported a 12 percent rise in second-quarter adjusted profit due
to higher contracted volumes, lifting its shares 1.3 percent to
    Shares of Bombardier Inc rose 0.8 percent to C$5
after the aircraft and train maker reported a 22 percent rise in
second-quarter profit, helped mainly by growth in its train
    Barrick reported stronger-than-expected quarterly results,
sending its shares up 2.8 percent even as it recorded an $8.7
billion impairment charge and cut its dividend by 75 percent.
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