July 14, 2009 / 9:44 PM / 10 years ago

CANADA STOCKS-TSX rises broadly as Goldman fuels rally

 * TSX rises 0.95 pct to 9,986.15 for second day of gains
 * Financials lead TSX after strong Goldman Sachs results  (Adds details, quote, updates numbers)
 By John McCrank
 TORONTO, July 14 (Reuters) - Toronto’s main stock index finished higher for a second straight session on Tuesday in a broad rally led by financials, which were encouraged by strong results at Goldman Sachs (GS.N) in the United States.
 The S&P/TSX composite index .GSPTSE closed up 94.22 points, or 0.95 percent, at 9,986.15. Nine of the index’s 10 main groups were higher.
 The financials sector, which accounts for about a third of the index, ended up 2.01 percent, and the top six advancers on the TSX were from the financial group, led by Royal Bank of Canada (RY.TO), up 2.9 percent at C$47.86.
 Toronto-Dominion Bank (TD.TO) followed, up 1.7 percent at C$58.96. Bank of Nova Scotia also rose 1.7 percent, to C$42.14.
 “What’s helped (the market) for the past couple of days has been good earnings and good economic news,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
 Quarterly earnings at Goldman Sachs surged 33 percent on strong trading results, handily beating market expectations. The U.S. banking industry was near collapse just nine months ago. [ID:nN14289399]
  Johnson & Johnson’s (JNJ.N) quarterly results also beat analysts’ forecasts, pointing to resilient pharmaceutical and consumer product sales in the United States. [ID:nN14253944]
 “They’re sort of two extremes here, I mean Goldman Sachs is very much of a risk animal, and Johnson & Johnson tends to attract risk-averse investors, and both companies beat expectations,” said Nakamoto. “It’s good that it’s not just one sector doing well.”
 Alimentation Couche-Tard (ATDb.TO), North America’s second-biggest convenience store retailer and operator of a string of gas bars, rose 4.3 percent to C$14.92, after it reported a stronger quarterly profit. [ID:nN14255046]
 In the index’s materials group, Barrick Gold (ABX.TO) climbed 1.3 percent to C$37.38, and Kinross Gold (K.TO) rose 1.1 percent to C$21.17, as the price of gold edged higher on U.S. inflation worries. [ID:nLE288914] The group as a whole was up 0.66 percent.
 Fertilizer producer Potash Corp POT.TO was one of the biggest drags on the index, limiting gains in the materials group.
 Potash Corp fell 2.5 percent to C$95.52, extending a slide that started on Monday after the head of India’s IFFCO, a farmer fertilizer cooperative, said that three international companies had agreed to supply Indian buyers with potash well below current spot market prices. [ID:nBNG121776]
 ($1=$1.13 Canadian)  (Reporting by John McCrank; editing by Peter Galloway)                                      

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