August 3, 2010 / 8:37 PM / 9 years ago

CANADA STOCKS-TSX gains on oil price, plays catch-up

*TSX up 69.17 points, or 0.59 percent, at 11,782.60

*Eight of index’s 10 main groups higher

*RIM drops as security issue clouds new phone’s launch (Updates to close, adds quotes)

By Jennifer Kwan

TORONTO, Aug 3 (Reuters) - Toronto’s main stock index retreated from a six-week peak but still ended higher on Tuesday as a weak U.S. dollar helped boost energy issues and investors played catch-up with prices on other stock markets after a holiday Monday in Canada.

The index’s hefty energy sector, up 1.3 percent, led the charge with Suncor Energy Inc (SU.TO) up 2.4 percent at C$34.71, and Canadian Natural Resources (CNQ.TO) rallying 2.3 percent to C$36.21. The price of oil pierced a three-month high above $82 a barrel. [O/R]

The index’s materials group rose 0.9 percent as gold prices climbed, boosting such names as Barrick Gold (ABX.TO), up 0.5 percent at C$42.46, and First Quantum Minerals (FM.TO), up 4.6 percent at C$67.37.

The TSX was closed on Monday, missing out as stock prices rose in the United States and elsewhere.

“The main reason why we’re doing so well really is because we’re playing catch-up to what transpired in not just the States but world markets over the (Canadian) holiday,” said Levente Mady, market strategist at Union Securities in Vancouver.

U.S. stocks closed at their highest level in 10 weeks on Monday, while global markets surged, in part as European bank earnings boosted optimism. Analysts also said the TSX’s rise on Tuesday reflected lingering optimism about Monday’s U.S. data, which showed manufacturing growth in July was better than many analysts had expected. [ID:nN02197601] [.N] [MKTS/GLOB]

On Tuesday, the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished the session up 69.17 points, or 0.59 percent, at 11,782.60, with eight of its 10 main sectors higher. Earlier, the index touched a six-week high at 11,872.89.

Royal Bank of Canada (RY.TO), the country’s biggest lender, was up 0.2 percent at C$53.83, while Toronto-Dominion Bank (TD.TO) rose 0.6 percent to C$73.62.

Research In Motion RIM.TO was in the spotlight as it unveiled a new BlackBerry smartphone with a touchscreen and slideout keyboard, hoping to raise its consumer appeal and fend off competition from Apple’s iPhone. [ID:nN03159974]

Separately, there were reports the BlackBerry maker RIMM.O may be considering concessions to India and Kuwait after their governments voiced concerns that the BlackBerry could be a security threat. [ID:nLDE6720WQ] For more related stories, please see: [ID:nN02151382]

RIM shares were the top net loser on the market, and closed 4 percent lower at C$56.77.

$1=$1.02 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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