June 14, 2010 / 2:42 PM / 9 years ago

CANADA STOCKS-TSX rises as resource rally signals confidence

*TSX up 66.04 points, or 0.6 percent at 11,732.96

*Energy, base-metals, banks lead index higher (Updates with prices, adds details, quotes)

By Claire Sibonney

TORONTO, June 14 (Reuters) - Toronto’s main stock index rose on Monday morning as gains in commodity prices signaled growing investor confidence in the global economic recovery.

Oil prices rallied above $75 a barrel as the euro and global equity markets got a boost from data that showed euro zone industrial output in April surged year-on-year more than in any month in almost two decades. [ID:nLDE65D0YC] [O/R]

The energy sector shot up 1.4 percent. Suncor Energy (SU.TO) rose 1.3 percent to C$34.20, and EnCana Corp (ECA.TO) gained almost 1 percent to C$34.97.

Also lifting risk sentiment, a top U.S. Federal Reserve official said the strong global economic recovery is unlikely to be thrown off course by European debt woes or, improbably, by the bursting of an asset bubble in China. [ID:nTOE65D04O]

“We’ve got just a little bit of buyers’ appetite out here,” said Bruce Latimer, a trader at Dundee Securities.

“You’ve got the Canadian dollar a little stronger, you’ve got some of the commodities doing better, I think people are just looking at some names they feel have been beaten up over the last little while.” [CAD/]

Base-metal miners were up 2.8 percent after copper prices hit the highest level in more than a week, sending Teck Resources TCKb.TO soaring 4.1 percent to C$36.15, and First Quantum Minerals (FM.TO) jumping 2.3 percent to C$57.05. [MET/L]

At 10:16 a.m. (1416 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 66.04 points, or 0.57 percent, at 11,732.96. Eight of its 10 main groups were higher.

The index’s weighty financial sector was up 0.6 percent on the improved macro-economic backdrop. Royal Bank of Canada (RY.TO) added 0.7 percent to C$53.39, and Toronto-Dominion Bank (TD.TO) rose 0.9 percent to C$71.07.

“I think investors don’t want to get too far ahead of themselves but they’re just going to continue to buy cautiously,” Latimer said.

“If stocks start to run they’re not going to chase them so they just want to sort of go with the flow,” he added, pointing to an options expiration later in the week that will likely spur some market volatility.

$1=$1.02 Canadian Reporting by Claire Sibonney; 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