April 8, 2013 / 9:25 PM / 6 years ago

CANADA STOCKS-TSX snaps 5-day losing streak as industrials, telecoms gain

* TSX rises 12.71 points, or 0.10 percent, to 12,344.56
    * Six of 10 main index sectors advance
    * Agrium up as boardroom battle heats up

    By John Tilak
    TORONTO, April 8 (Reuters) - Canada's main stock index
snapped a five-day losing streak on Monday, rising with world
stock markets on aggressive action by Japan's central bank to
stimulate the economy and showing strength in the industrials
and telecoms sectors, while gold miners declined.
    The gold producers fell as the appetite for equities and
comments by billionaire financier George Soros that gold has
been destroyed as a safe-haven asset pushed bullion prices
    The rise in industrials and telecoms helped the index
recover from its worst week in about 10 months. The benchmark
index fell 3.3 percent last week as a slew of negative economic
news weighed on investors, particularly data on Friday that
showed Canada posted its worst monthly jobs loss in more than
four years in March.  
    The Bank of Japan conducted its first government bond-buying
operation on Monday since it announced new policy easing steps
last week. 
    "The aggressive monetary policies that the Bank of Japan
released last week are definitely helping risk assets recover
from last week's pullback," said Youssef Zohny, portfolio
manager at Stenner Investment Partners, a unit of Richardson
    "(But) there's some frustration for Canadian investors that
the Canadian market has underperformed relative to our neighbors
in the south," he added. "The TSX needs to see some firming of
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 12.71 points, or 0.10 percent, at 12,344.56.
Six of the 10 main sectors on the index were higher.
    The index is down 0.7 percent since the start of the year,
while the S&P 500 has gained about 9 percent in the same period.
    "The recovery is not taking off completely," said Irwin
Michael, portfolio manager at ABC Funds. "But we believe slowly
but surely, the economy is turning the corner."
    Industrial shares advanced 0.7 percent, helped by a 1.8
percent rise in Canadian Pacific Railway Ltd to
    Shares of Bombardier Inc were up 1.8 percent to
C$4.00 after the company said its train unit signed an agreement
with German engineering group Siemens AG to supply
train components to state-owned rail operator Deutsche Bahn in a
deal worth about 336 million euros ($438 million).
    Telecoms shares climbed 0.6 percent, with Rogers
Communications Inc advancing 1.6 percent to C$51.69.
    The materials sector, which includes mining stocks, lost 0.6
percent with the weakness in gold stocks partially offset by
gains in Agrium Inc.
    Shares of Agrium rose 1.6 percent to C$99.33 after activist
shareholder Jana Partners LLC said two of its five candidates
appeared to have garnered enough votes to be elected to the
fertilizer maker's 12-member board. 
    Financials, the index's weightiest sector, were down
    Royal Bank of Canada slipped 0.3 percent to C$59.44
after a public uproar over news that the Canadian government is
investigating a report that the bank is using temporary foreign
workers hired by an outsourcing company to effectively replace
existing staff.
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