July 10, 2008 / 8:48 PM / 11 years ago

UPDATE 2-Toronto stocks propelled by strong resources

(Updates closing numbers, adds details, quotes)

*TSX index gains as resource issues advance

*Worries over credit crunch nag at broad market

*Consumer stocks fall on uneasiness over energy prices

TORONTO, July 10 (Reuters) - The Toronto Stock Exchange’s main index closed 1 percent higher on Thursday, propped up by the large resource sectors, but worries over more impact from the credit crunch kept the broader market below the water line.

A $6 jump in oil prices amid threats to production in Nigeria and Brazil, and tensions between the West and Iran lifted energy producers, sent the sector up 3.2 percent.

But worries over continuing credit crunch fallout added a negative tone to the market, and knocked 0.8 percent off the bank-heavy financial sector.

“I think the market is going to have to start differentiating between (banks) that are more likely to give you a couple more negative surprises, than not,” said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd., in Calgary, Alberta.

“And the second thing is, it’s going to have to come to the realization that we’re probably most of the way through this,” Kerkovius added.

The S&P/TSX composite index .GSPTSE closed up 133.04 points, or 0.98 percent, at 13,743.88, but just three of its 10 main sectors were in positive territory.

The materials sector gained 2.3 percent, helped by miners as prices for gold and other metals rallied. Agnico-Eagle Mines (AEM.TO) was up C$2.55, or 3.6 percent, at C$73.85, and Barrick Gold (ABX.TO) rose C$2.03, or 4.5 percent, to C$47.19.

In the oil patch, Canadian Natural Resources (CNQ.TO) jumped C$3.39, or 4 percent, to C$89.15, and Canadian Oil Sands Trust COS_u.TO added C$2.82, or 5.8 percent, to C$51.25.

Among the banks, Canadian Imperial Bank of Commerce (CM.TO) was down C$1.22, or 2.2 percent, at C$53.74, and Toronto-Dominion Bank (TD.TO) eased C$1.12, or 1.8 percent, to C$60.12.

Consumer shares were battered by worries over a failing consumer appetite in the face of high energy prices. The consumer discretionary and staples sectors were down 1.5 percent and 1.7 percent, respectively.

Rising in addition to the energy and materials sectors was the utilities group, up 0.3 percent. ($1=$1.01 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)

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