September 6, 2012 / 2:37 PM / 6 years ago

CANADA STOCKS-Europe's bond-buying plan boosts key Canada index

* TSX jumps 111.19 points, or 0.93 percent, to 12,101.33
    * ECB bond-buying helps Canada index hit one-week high
    * Miners, oil and gas companies lead rise

    By Alastair Sharp
    TORONTO, Sept 6 (Reuters) - Canada's main stock index jumped
nearly 1 percent on Thursday, buoyed by commodity stocks, after
Europe's central bank agreed to launch a potentially unlimited
bond-buying program in a bid to draw a line under the region's
debt crisis.
    Signs that European growth could get back on track provided
a fillip to Canada's deep lineup of mining and oil and gas
companies that are acutely sensitive to global demand.
    The European Central Bank's president, Mario Draghi, sought
to back up a July pledge to do whatever it takes to preserve the
euro with the plan which he said would address bond market
distortions and "unfounded" fears about the survival of the
    "It's clearly a positive for this market - the Toronto
market is a risk-on market, a commodity-weighted market -
because we will not be able to get clarity on commodities if
Europe is mired in recession and political stalemate," said John
Stephenson, senior vice-president at First Asset Investment
Management Inc.
    By 10:05 a.m. (1405 GMT), the Toronto Stock Exchange's
S&P/TSX composite index had gained 111.19 points, or
0.93 percent, to 12,101.33, a one-week high. All ten major
sectors rose.
    Commodities were broadly higher, with oil and gold both
notching gains.  
    Canadian Natural Resources jumped 3.1 percent to
C$30.26 and Suncor Energy gained 1.6 percent to C$31.84,
accounting for the two biggest positive influences.
    Shawcor soared 20.5 percent to C$42.26 after
saying it was for sale. The energy services company is expected
to attract interest from both strategic buyers and private
equity players, given strong demand for its pipeline coating and
other specialty businesses with dominant market
    Major Drilling Group International Inc jumped 9.5
percent to C$10.00 after reporting record quarterly earnings and
saying that demand services remains strong. 
    Encana Corp gained 1.9 percent after the natural
gas producer said an internal investigation determined it did
not collude with Chesapeake Energy Corp to lower the price of
land acquisitions in Michigan two years ago. 
    Base metals miner Inmet Mining Corp gained 1.6
percent. It said it plans to expand its footprint in Panama with
an offer to acquire Petaquilla Minerals Ltd for about
C$112 million.
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