January 11, 2011 / 3:49 PM / 8 years ago

CANADA STOCKS-TSX rallies on commodities, earnings optimism

 *TSX up 1.1 percent at 13,390.44
 *All 10 sectors stronger  (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Jan 11 (Reuters) - Toronto’s main stock index bounced sharply higher on Tuesday morning, snapping its five-day new year’s losing streak as commodity prices rallied and investor optimism was boosted by a solid start to the U.S. earnings season.
 All 10 index sectors were stronger, led by the weighty materials group, which was up 1.5 percent and helped by higher copper and gold prices. [MET/L] [GOL/]
 Teck Resources TCKb.TO rallied 3 percent to C$62.35 and Goldcorp Inc (G.TO) climbed 2.2 percent to C$43.57. Goldcorp, Canada’s No. 2 gold miner, said it was was eyeing stronger production this year and over the next five years. [ID:nN10268469]
 Fertilizer makers also edged higher after Desjardins raised share-price targets for both Potash Corp POT.TO, up 0.05 percent at C$164.82, and Agrium Inc AGU.TO, up 1.2 percent at C$91.21. [ID:nWNAB3711]
 “What we’re looking at is a market that is focused on improving economic conditions and stronger commodity prices,” said Fred Ketchen, director of equity trading at ScotiaMcLeod.
 South of the border, Alcoa Inc (AA.N) posted a quarterly profit that topped Wall Street’s expectations, though revenue missed analysts’ average estimate slightly.  [.N]
 “After Alcoa reported last night ... people seem to be satisfied, and as a result, we’ve had a number of people who are raising their price targets on Alcoa ... and a number of issues have had their price targets raised in various sectors,” Ketchen said.
 The index’s energy sector rose 1.3 percent as the price of oil rose above $90 a barrel as a key Alaskan pipeline remained shut. [O/R]
 Suncor Energy (SU.TO) rose 1 percent to C$37.21, and Canadian Natural Resources (CNQ.TO) rose 1.3 percent to C$42.15 after the company said on Monday it may be able to resume limited production at its Horizon oil sands project following a fire last week.
 At 10:35 a.m. (1535 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 145.33 points, or 1.1 percent, at 13,390.44.
 Financials were 0.9 percent higher. Royal Bank of Canada (RY.TO) shot up 1.7 percent to C$52.59, and Bank of Montreal (BMO.TO) advanced 0.6 percent to C$58.40 after announcing it will buy a Hong Kong-based wealth management firm as it looks to boost its presence in Asia and emerging markets. [ID:nSGE70A0AY]
 “We’ve got some recovery in the financial services side. All of the banks are showing half decent gains so far today,” Ketchen said. “They have not been participating in any kind of strength over the last week or so and maybe for the first time now this year our Toronto index may end the day ahead.”
 ($1=$0.99 Canadian)  (Reporting by Claire Sibonney; editing by Peter Galloway)                                        

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