August 3, 2011 / 9:24 PM / 8 years ago

CANADA STOCKS-Golds, RIM help TSX recover from early plunge

   * TSX ends up 63.71 points, or 0.5 pct, at 12,816.03
 * Rebounds from lowest level since mid-November
 * Seven of 10 index sectors end higher  (Adds details, quotes)
 By Claire Sibonney
 TORONTO, Aug 3 (Reuters) - Toronto’s main stock index closed higher on Wednesday, dramatically rebounding after sagging to an eight-month low earlier in the day, as Research In Motion RIM.TO and precious metal miners rallied, and battered financial issues gained some ground.
 Among the four most heavily weighted gainers, Royal Bank of Canada (RY.TO) rose 2 percent to C$51.30, Toronto-Dominion Bank (TD.TO) added 1.9 percent to C$76.79, Bank of Nova Scotia climbed 1.4 percent to C$53.28, and Barrick Gold Corp (ABX.TO) advanced 1.4 percent to C$47.31.
 Research In Motion RIM.TO was another bright spot, marking the fifth heaviest gain on the index. The BlackBerry maker surged 5 percent to C$24.42 after it took the wraps off two new versions of its touchscreen BlackBerry Torch smartphone. [ID:nN1E7720GP]
  “A lot of the U.S. economic data has come in fairly soft and that’s created quite a bit of uncertainty for investors, however it seems like markets are potentially overshooting that,” said Youssef Zohny, portfolio manager at Van Arbor Asset Management in Vancouver.
 “It’s a bit premature to look at economic weakness persisting,” he said.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 63.71 points, or 0.5 percent, at 12,816.03. Seven of the index’s 10 main groups closed stronger.
 The TSX had ended lower in five of the past seven sessions, and Wednesday’s rally paralleled a rise by U.S. markets, which broke a seven-day run of declines. [.N]
 Pessimism about the U.S. economic outlook weighed heavily on the market early in the day, sending the TSX to lows not seen since last November, though it held above a significant technical support level around 12,500.
 Data on Wednesday showed the pace of growth in the U.S. services sector ticked down unexpectedly in July to the lowest level since February 2010, while the number of jobs created by the private sector also slowed. [ID:nN1E77208M]  
 The trend to slower growth in the services sector was prevalent around the world in July, figures showed, as companies worried about the debt crisis in Europe and the United States as well as slowing consumer demand. [ID:nL6E7J30NB]
 “Obviously, the market is oversold and there’s chance of a little rally,” said Sal Masionis, stockbroker at Brant Securities, noting that financial issues had recently dropped sharply.
 “I think we’re having a little bit of a rebound. Gold prices are still running but how high it’ll go, who knows?”
 The jump in precious metal miners, up 1 percent, followed another record high for gold prices as investors sought refuge from slumping stock markets, volatile currencies, a slowing economy and fears of even looser U.S. monetary policy. [GOL/]
 The TSX’s energy sector lost 0.7 percent, stung by a rise in U.S. petroleum inventories and worries about soft demand amid the U.S. and European debt crises and a struggling global economy. [O/R]
 Suncor Energy (SU.TO) dropped 1.8 percent to C$34.65, while Canadian Natural Resources (CNQ.TO) skidded 0.8 percent to C$36.83.
($1=$0.96 Canadian)                                        

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