July 21, 2011 / 3:13 PM / 8 years ago

CANADA STOCKS-TSX at 2-wk high on euro zone hopes, energy leads

 * TSX up 95.69 points, or 0.7 pct, at 13,436.52
 * Nine of 10 sectors stronger  (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, July 21 (Reuters) - Toronto’s main stock market index hit a two-week high on Thursday after draft EU summit conclusions eased anxiety about the European debt crisis, while positive U.S. earnings and data further encouraged investors.
 Energy stocks, boosted by rising oil prices, played the biggest role in leading the market higher.
 Suncor Energy (SU.TO) added 0.9 percent to C$38.69. Encana Corp (ECA.TO) firmed 1.7 percent to C$30.34 after the natural gas producer posted a second-quarter profit and said it expects to meet its full-year cash flow target. [nL3E7IL24C]
 South of the border, earnings results from Morgan Stanley lifted optimism over the battered banking sector, lifting Canadian financials 0.9 percent. [.N]
 Toronto-Dominion Bank (TD.TO) was the third most influential climber, gaining 1.3 percent to C$80.23, while Royal Bank of Canada (RY.TO) rose 0.8 percent to C$53.96.
 Stocks also benefited as draft EU summit conclusions eased anxiety about the European debt crisis. The euro zone bailout fund, the EFSF, will provide loans to Greece, Ireland and Portugal at a lower interest rate and for longer maturities, according to the draft seen by Reuters. [ID:nB5E7HN032]
 “It looks like this may be one way of working out some kind of deal acceptable to all the parties, so that has helped to set a more positive tone to the market,” said Bob Gorman, chief portfolio strategist at TD Waterhouse.
 Gorman pointed also pointed to a significant rebound in factory activity in the U.S. Mid-Atlantic region. [nN1E76K0MA]
  At 10:28 a.m. (1428 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 95.69 points, or 0.7 percent, at 13,436.52. Nine of the 10 sectors were stronger.
 It rose as high as 13,451.94, its strongest level since July 7.
 “You’ve got a pretty significant series of positive numbers here, both on the macro-economic side and in the company specific level which has pretty much fit into our thesis about pretty firm fundamentals,” added Gorman.
 Loblaw Cos (L.TO), Canada’s No. 1 grocery chain, edged up 0.3 percent to C$38.44, after posting a higher quarterly profit. [nN1E76J1M8]
 Healthcare stocks surged 2.1 percent, on deal news in the sector in the United States.  (Editing by Jeffrey Hodgson)                  

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