November 4, 2008 / 9:55 PM / 10 years ago

CANADA STOCKS-TSX surges as commodity prices push higher

* Index closes above 10,000 for first time in two weeks

* Energy issues soar as oil rises above $70

* Talisman Energy rises as profit quadruples

(Adds closing numbers, quotes, details)

TORONTO, Nov 4 (Reuters) - The Toronto Stock Exchange’s main index rallied on Tuesday to its highest close in two weeks as resource stocks surged with rising commodity prices, and on relief that the uncertainty of the U.S. presidential election would be over later in the day after the votes are counted.

Heavily-weighted stocks that helped to push the market higher included Canadian Natural Resources (CNQ.TO), up 9 percent at C$62.70, and Barrick Gold (ABX.TO), which got an 10.1 percent boost to close at C$28.97.

Those rises were in line with the broader strength in the key energy and materials sectors, which led the market higher, posting rises of 5.9 percent and 10.2 percent, respectively.

The price of crude settled up $6.62 at $70.53 a barrel on signs Saudi Arabia and other OPEC members had made cuts in crude exports. [ID:nSP182808], while gold and base metals prices rose on a weaker U.S. dollar. [ID:nL4183661]

The rally was due to a “little bit of everything” as investors shopped for beaten-down stocks, said John Kinsey, portfolio manager at Caldwell Securities Ltd.

“They were in an oversold position, badly oversold until last week,” Kinsey said of the key index.

“Last week, we had a number of good days and maybe people are getting a little optimistic about the U.S. election. If people feel that a new brush will work better than the old one then there’s hope we won’t get a world recession and if the U.S. does all right, that will be good for Canada.”

The S&P/TSX composite index .GSPTSE, closed up 395.32 points, or 4.07 percent, at 10.116.58, with eight of its 10 main groups higher.

In the oil patch, Talisman Energy TLM.TO rose 8.4 percent to C$12.64 as Canada’s No. 3 independent oil explorer reported its quarterly profit quadrupled. [ID:nN03372777]

Magna International MGa.TO was a major drag on the index, down 3.6 percent at C$39.52 as the auto-parts maker reported a quarterly loss on plunging U.S. auto sales and a softening market in Europe. [ID:nBNG373290]

$1=$1.15 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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