June 14, 2011 / 3:36 PM / 8 years ago

CANADA STOCKS-TSX rebounds on positive data, resources

   * TSX up 145.88 points, or 1.13 pct, 13,085.60
 * Nine of 10 main groups higher
 * Index back above 13,000
 By Solarina Ho
 TORONTO, June 14 (Reuters) - Toronto’s main stock index was firmly higher on Tuesday morning, rebounding from Monday’s slump below 13,000 as a flurry of positive economic data helped lift resource and financial issues.
 Energy stocks jumped 1.79 percent, while the mining-heavy materials sector gained 1.38 percent and financials climbed 0.86 percent. The three hefty sectors make up more than 75 percent of the index’s weight.
 Suncor Energy (SU.TO) was the most influential gainer on the index, rising 2 percent to C$38.34. Canadian Natural Resources (CNQ.TO) followed with a 1.66 percent gain to C$39.25. Bank of Nova Scotia (BNS.TO) was up 1.05 percent at C$57.50, while diversified miner Teck Resources TCKb.TO advanced 2.72 percent to C$46.15.
 A slew of economic data encouraged investors to dip back into the equities market. Stronger manufacturing data from Canada combined with better than expected U.S. retail sales and Chinese economic data boosted market optimism.
 At 10:41 a.m. (1441 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 145.88 points, or 1.13 percent, 13,085.60. All sectors except telecoms were firmly higher.
 The TSX has suffered a string of declines, falling about 5.5 percent since the end of May when the current round of declines began. On Monday, it closed below 13,000 for the first time since November, as a downgrade of Greece’s credit rating resulted in more economic pessimism.
 “We have had weeks of down action,” said John Ing, president of Maison Placements Canada.
 “(It’s a) positive day, a rebound. Financials were very strong, which is good to see ... I think it’s premature to call this a turn — just one day, just a positive day for a change.”
 Data showed Canadian industrial capacity use rose in the first quarter as manufacturers exhibited renewed strength after a year of slowing growth. [ID:nN14284333]
 Retail sales in the United States — Canada’s largest trading partner — fell less than expected in May, giving some respite to investors overwhelmed by recent weak economic news. [nN14125114] [nCAT005457]
 Chinese data, including inflation and industrial output, suggested economic growth was slowing down, but not too quickly, relieving concerns that the world’s second-biggest economy was heading for a hard landing.
 The Chinese output data also helped give resource prices a lift, which in turn bolstered mining and oil stocks. [nNL3E7HE05] [MET/L] [O/R]
 On the corporate front, Sino-Forest TRE.TO, the target of a scathing attack from short-seller Muddy Waters, said on Tuesday its internal review of the fraud allegations leveled against the company is likely to take two or three months to complete. The news sent its shares falling 11.65 percent to C$4.40. [ID:nN14147080]
 ($1=$0.97 Canadian)  (Reporting by Solarina Ho; editing by Rob Wilson)                                        

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