August 11, 2011 / 6:58 PM / 8 years ago

CANADA STOCKS-TSX rises 1.7 pct as oils and banks advance

 * TSX up 207.09 points, or 1.7 percent, at 12,405.98
 * Energy, financials drive gains, but golds drag
 * Manulife rises as results tops estimates
 * Open Text drops 17 pct as results miss, targets cut  (Recasts, updates prices, adds analyst comment)
 By Trish Nixon
 TORONTO, Aug 11 (Reuters) - Toronto’s main stock market index climbed nearly 2 percent on Thursday as energy shares rebounded on the back of stronger oil prices and financials gained ground, offsetting pressure from falling gold miners.
 U.S. stocks were also higher, as stronger-than-expected jobs data took some of the focus away from renewed fears about the health of the euro zone banking system. [MKTS/GLOB]
 The gain comes after the index on Monday suffered its biggest intraday drop since 2009 and hit a near one-year low.
 “Nothing goes straight up or down, and it today it looks like some bargain hunting has come in ... Especially in the (U.S) banks that were oversold so much and that’s spilled over into our financials.” said John Kinsey, portfolio manager at Caldwell Securities Ltd.
 The energy sector, which had recently taken a heavy beating, led the index’s gains, adding 2.8 percent as the price of oil recovered from steep losses. [O/R]
 The financials followed, adding 1.9 percent to more than make up for losses on Wednesday.
 At 2:47 p.m (1847 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 207.09 points, or 1.7 percent, at 12,405.98, rebounding after a 1 percent drop earlier. Nine of the index’s 10 main groups were higher.
 Potash Corp POT.TO topped all influential advancers, up 4.4 percent to C$53.45, while Bank of Nova Scotia (BNS.TO) was up 2 percent at C$52.96, and Royal Bank of Canada added 1.7 percent C$50.57.
 The materials sector was up a modest 0.1 percent as most commodity prices bounced back from their lows this week, but gold-mining shares pressured the sector as they gave back some of Wednesday’s sharp gains.
 The gold-mining subgroup fell 0.9 percent, tracking the price of gold which dropped more than 3 percent after reaching an all-time peak of $1,813.79. [GOL/] [MET/L]
 “It’s not surprising,” said Kinsey. “You are getting some profit taking in the metal, and that’s weakened some of the stocks.”
 Kinross Gold led the index’s decliners, down 6 percent to C$15.33, while Iamgold Corp  (IMG.TO) lost 9.2 percent to C$18.51, and Goldcorp (G.TO) fell 1.8 percent to C$49.66.
 Helping support the index was Manulife Financial (MFC.TO). Its results topped estimates and rebounded from a year-earlier loss, as the insurer cut losses associated with weak financial markets.
 Its shares rose 4 percent to C$13, reclaiming some lost ground from Wednesday when it was the most influential decliner. [ID:nN1E77914S]
 Open Text OTC.TO dropped more than 10 percent to C$51.51, and was the chief weight in the information technology group, which lost 0.7 percent.
 At least three analysts cut their price targets on the business software company, the day after it reported a rise in quarterly adjusted profit, but missed estimates. [ID:nN1E7791HI][RCH/CA]  (Editing by Jeffrey Hodgson)                  

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