June 14, 2011 / 8:42 PM / 8 years ago

CANADA STOCKS-TSX bounces back on upbeat economic data

   * TSX ends up 158.10 points, or 1.22 pct, at 13,097.82
 * Nine of 10 main groups finish higher
 * Index closes back above 13,000
 By Claire Sibonney
 TORONTO, June 14 (Reuters) - Toronto’s main stock index bounced back on Tuesday, climbing from a 6-1/2 month low hit in the previous session, as positive economic data lifted market sentiment and investors scooped up battered shares.
 Energy stocks jumped almost 2 percent, while the mining-heavy materials sector gained 1.2 percent and financials climbed 0.9 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, advancing 2.1 percent to C$38.39. Bank of Nova Scotia (BNS.TO) followed, with a 1.4 percent rise to C$57.70, while diversified miner Teck Resources TCKb.TO gained 3 percent to C$46.29.
 A flurry of economic data encouraged investors to dip back into riskier assets, including equities and commodities.
 Better-than-expected U.S. retail sales and Chinese economic data boosted market optimism, as did stronger domestic manufacturing figures.
 “Markets appear to be oversold. The question is, is the game back on, meaning the classic risk-on trade,” said Robert McWhirter, president and portfolio manager at Selective Asset Management.
 “On a very near-term basis we’re still trying to figure out is this just a bounce or is it the start of something more interesting. My guess is we’re still unfortunately going to chug along, grinding for two to three weeks before a resumption back to the upside.”
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 158.10 points, or 1.22 percent, at 13,097.82. All sectors except telecoms were stronger. It was the market’s biggest one-day gain in nearly four weeks.
 The TSX had suffered a string of declines before Tuesday, falling about 10 percent since the the 2011 high reached in March. On Monday, it closed below 13,000 for the first time since late November, as a downgrade of Greece’s credit rating resulted in more economic pessimism.
 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. [ID:nN14189765]
 Chinese data, including inflation and industrial output, suggested economic growth was slowing, but not too quickly, relieving concerns that the world’s second-biggest economy was heading for a hard landing.
 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 fraud allegations leveled against the company will take up to three months to complete. The news sent its shares plunging 33 percent to C$3.36. [ID:nN14147080]
 Air Canada ACa.TO rallied 5 percent to C$1.88 as shares of the country’s biggest airline recovered from an earlier selloff ahead of a strike by customer service and ticket sales agents.
 The airline said it would continue to operate its full schedule despite the strike and that it was ready to resume discussions at any time with the Canadian Auto Workers union. [ID:nL3E7HE0JF]
 Meantime, the federal government said it was prepared to legislate an end to the dispute because of the serious effect it could have on the economy.
 ($1=$0.97 Canadian)  (Reporting by Claire Sibonney; editing by Rob Wilson)                                        

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