January 18, 2011 / 9:37 PM / 8 years ago

CANADA STOCKS-Resource rally fuels TSX to 28-month high

   * TSX ends up 0.89 percent at 13,559.20.
 * Nine sectors advance, oil and materials lead way
 * BoC leaves rates steady, signals extended pause  (Updates to close)
 TORONTO, Jan 18 (Reuters) - Toronto’s main stock index shot to its highest point since early September 2008 on Tuesday, fueled by rallying resource issues as most commodity prices firmed, while financials were buoyed by the Bank of Canada’s decision to hold interest rates steady.
 The top gainers were mainly resource issues, which drew support from firmer prices for gold, silver, copper and palladium. The materials and oil and gas groups each posted advances greater than 1 percent. [GOL/] [MET/L]
 “Some of this is on the tailwind of a weaker U.S. dollar, stronger commodity prices, and this is helping the Canadian equity markets,” said John Kurgan, senior market strategist at Lind-Waldock.
 Teck Resources TCKb.TO climbed 3 percent to C$63.84, while Barrick Gold Corp (ABX.TO) advanced 1.98 percent to C$47.81. Suncor Energy (SU.TO) rose 1.57 percent to C$38.79, and Canadian Natural Resources climbed 1.78 percent to C$42.40.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished up 119.09 points, or 0.89 percent, at 13,559.20. Nine of its 10 main sectors were higher, but telecoms were unchanged.
 Financials added 0.31 percent, boosted by the outlook for continued low interest rates after the central bank kept its overnight target at 1 percent on Tuesday, as expected. [ID:nN18290983]
 “The Bank of Canada indicating that they aren’t going to change interest rates for the time being is being taken as good news,” said Michael Sprung, president of Sprung & Co. Investment Counsel. “The banks are happy with that, so that should help their net interest margin a little bit here.”
 Royal Bank of Canada (RY.TO) rose 0.3 percent to C$54.13, while Bank of Montreal gained 0.39 percent at C$59.68.
 Toronto-Dominion Bank (TD.TO) gained 0.55 percent to C$76.52, aided by a rise in quarterly profit at U.S. brokerage TD Ameritrade Holding Corp (AMTD.O), in which TD has a 46 percent stake.  [ID:nN16244192]
 ($1=$0.99 Canadian)  (Reporting by Ka Yan Ng and 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