October 11, 2011 / 9:14 PM / 7 years ago

CANADA STOCKS-TSX ends sharply higher on post-holiday bounce

 * TSX ends up 287.19 points, or 2.48 pct, at 11,875.55
 * Toronto plays catch-up after Monday holiday close
 * All ten sectors close higher
 * Energy boosted by takeover bid for Daylight
 By Ashleigh Patterson
 TORONTO, Oct 11 (Reuters) - Canadian stocks ended sharply higher on Tuesday, bolstered by a takeover bid in the heavyweight energy sector and a game of catch-up with global markets as the Toronto index resumed post-holiday trade.
 The energy sector rose 3.55 percent, helped by a rally in shares of Daylight Energy DAY.TO after a unit of China Petrochemical Corp (Sinopec) signed a deal to buy the Canadian oil and gas exporter for C$2.2 billion ($2.1 billion) in cash.
 Shares of Daylight closed at C$9.64, more than doubling their price from Friday’s close, and were the most actively traded on the Toronto Stock Exchange.
 Boosted by a rise in oil and spot natural gas prices, shares of Suncor Energy (SU.TO) also helped to lift the sector. Suncor closed at C$28.85, rising 2.78 percent.
 Canadian Natural Resources (CNQ.TO) closed up 3.3 percent at C$31.21.
 Brent November crude rose $1.78, or 1.63 percent, to settle at $110.73 a barrel, marking a fifth straight session of gains, while U.S. crude futures also extended their rally, rising 40 cents, or 0.47 percent, to settle at $85.81 a barrel. [O/R]
 “Most of the large cap stocks we have are all interlisted so it is really a simple game of catch-up,” said John Kinsey, portfolio manager at Caldwell Securities Ltd. “We went up over 200 points in the first 15 minutes and we’ve stuck there all day.”
 The materials sector, which includes gold and base metal miners, closed up 3.64 percent, led by fertilizer producer Potash Corp POT.TO, which was the biggest gainer on the index, climbing more than 6 percent to end at C$49.49.
 The rise was partly due to analyst anticipation of promising data from the U.S. Department of Agriculture’s monthly crop report due on Wednesday.
 Shares of North American fertilizer producers typically mirror moves in corn prices and analysts expect corn prices to rise on the data, due to negative revisions to production and positive revisions to demand.
 Shares of gold miner Agnico Eagle (AEM.TO) rose 2.6 percent to C$60.74 after it said production rose 11 percent in the third quarter. [ID:nNL3E7LB2VC]
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 287.19 points, or 2.48 percent, at 11,875.55. All 10 main sectors were higher.
 In company news, Research In Motion RIM.TO rose 3.5 percent to C$25.14 after one investors said a growing mass of its shareholders support calls for a break-up of the BlackBerry maker. [ID:nN1E79A05M]
 Shares of Air Canada ACb.TO fell 2.13 percent to C$1.38 as a strike deadline approached involving its 6,800 flight attendants. [nN1E79A0G1]
 In the United States, stocks rose on anticipation of the start of earnings season, which kicked off after the close of trade with aluminum giant Alcoa Inc (AA.N) reporting quarterly results.
 But strong gains were tempered by a lack of confidence in Europe’s ability to move ahead with debt-crisis action. [.N]
 U.S. stocks surged Monday, jumping 3 percent as French and German leaders pledged to unveil a comprehensive package to curtail the euro zone debt crisis.
 “Everybody was initially pleased to hear the report from France and Germany about coming up with a more suitable long-term solution to the sovereign debt issues of Europe and now everyone is waiting to see what the fine details are,” said Tim Burt, chief investment officer at Cardinal Capital Management Inc in Winnipeg, Manitoba.
 Investors were hopeful the expanded powers of the fund would help curb the euro zone debt crisis, which has lead to steep declines in global market sentiment.
 “There is still a fair amount of skepticism being voiced by a lot of investors that the details of the agreement may not be satisfactory. That’s why we’re getting a pull back in the U.S. market today,” said Burt.  (With additional reporting by Euan Rocha and Julie Gordon; Editing by Jeffrey Hodgson)                 

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