July 15, 2010 / 10:05 PM / 9 years ago

CANADA STOCKS-TSX surges to 3-week high in late rally

* TSX jumps 1.05 percent to 11,741.77

* Closes at at highest level since June 24

* All 10 main sectors post gains (Updates to close)

By Ka Yan Ng

TORONTO, July 15 (Reuters) - Toronto’s main stock index rallied into the close on Thursday, with all 10 of its main sectors ending in positive territory, as worries about the economic recovery gave way to hopes of increased momentum from healthy corporate earnings.

The TSX straddled the unchanged mark until the last hour of trading began, then turned decidedly higher as U.S. stocks recouped losses late in the day. The U.S. rebound was led by a sudden surge by Goldman Sachs Group (GS.N) on talk that U.S. securities regulators will make a major enforcement announcement. [ID:nN15238780] [.N]

After the bell, regulators said the Wall Street firm has agreed to pay $550 million to settle civil charges that it misled investors in a subprime mortgage product, bringing to a close one of the most tumultuous chapters in the bank’s history. [ID:nN15237915]

Toronto’s financial sector gained 1.01 percent, mirroring banking gains south of the border.

Key names on rise included Toronto-Dominion Bank (TD.TO), up 1.1 percent at C$72.88, while Royal Bank of Canada (RY.TO) rose 0.81 percent to C$55. Bank of Nova Scotia (BNS.TO) advanced 1.04 percent to C$52.44.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished at its high for the session, up 121.61 points, or 1.05 percent, at 11,741.77. That is also its highest level since June 24.

All 10 of the TSX’s major sectors finished higher, with four groups rising more than 1 percent, including the weighty materials group, as well as industrials and consumer staples.

“Today, many traders thought this was an opportunity to buy stocks a bit more cheaply in the face of what are likely to be stronger than expected earnings over the next week or so, on both sides of the border,” said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.

The broader market was little changed for much of the session, caught in a tug of war between positive sentiment over forecast-topping profits at U.S. bank JPMorgan, versus a raft of weak U.S. economic data that renewed concern about the strength of the recovery. [ID:nN15208925] [ID:nN13247761]

Other advancers in Thursday’s late rally included Potash Corp POT.TO, up 5.7 percent at C$102.49, while Canadian National Railway (CNR.TO) added 2.8 percent to C$63.82.

BlackBerry maker Research In Motion RIM.TO gained 2.24 percent to C$57.89, while uranium giant Cameco Corp (CCO.TO) rose 3.57 percent to C$25.79.

Nexen NXY.TO rose 4.4 percent to C$22.32 after Canada’s No. 5 independent oil explorer reported a market-beating quarterly profit, driven by higher energy prices. [ID:nSGE66E0EN]

Peter Chandler, senior vice-president at Canaccord Wealth Management, said trading volume has been on the lighter side, making moves somewhat exaggerated and not an accurate reflection of market sentiment.

“It means that there’s not a lot of conviction to drive it above or below the range,” he said. “So you put less faith in a move out of a range up or down when it’s on lower volume.”

He also said the Toronto market has been caught in a trading range but has performed relatively well, helped by Canada’s position as a net exporter of resources, such as oil.

“Canada is hanging in as well or better than the States because the world seems to have a little bit of a love affair with us.”

$1=$1.04 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson

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