January 24, 2011 / 10:34 PM / 8 years ago

CANADA STOCKS-TSX ends three-day skid with broad rally

   * TSX rises 89.01 points to 13,347.58
 * Nine of 10 main sectors higher  (Updates with additional details, comment)
 By Cameron French
 TORONTO, Jan 24 (Reuters) - Toronto’s main stock index ended a three-day losing streak on Monday, pushing higher in a broad rally led by industrial, financial and tech issues.
 With a dearth of economic or earnings news, investors sought bargains in the expectation that the market’s rally of the past three months would continue as the Canadian fourth-quarter reporting season gathers steam.
 “I think it’s a bit of a bounce back from what we had last week. It seems to be a ‘buy on dips’ mentality,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
 The S&P/TSX composite index .GSPTSE finished the session up 89.01 points, or 0.67 percent, at 13,347.58. Nine of the index’s 10 main sectors rose.
 Resource issues were the laggards, with energy stocks easing on the back of weaker oil prices. Materials stocks rose just 0.4 percent, undercut by a retreat in gold-mining shares after they gained early in the session.
 Crude oil futures ended lower for the fifth straight session, falling about 1.4 percent, on high stockpiles. Gold prices eased 0.5 percent on technical selling.
 Quadra FNX Mining QUX.TO was the worst performer among materials issues, plunging 10.8 percent to C$13.90 after the base metals producer reported 2010 copper production that fell well short of earlier forecasts.
 BlackBerry maker Research In Motion RIM.TO rose 2.6 percent to C$62.35, regaining some of last week’s steep losses. RIM’s gains helped drive the TSX tech sector up 1.7 percent.
 Industrial issues were spurred by Canadian National Railway (CNR.TO), which rose 1.5 percent to C$68.45 after the country’s biggest railway said it had reached an agreement with unionized workers, averting a strike.
 Also among industrials stocks, Air Canada ACb.TO gained 2.3 percent to C$3.08, while engineering firm SNC-Lavalin (SNC.TO) added 1.6 percent to C$62.07.
 Financial issues, which make up the largest percentage of the index, rose 0.8 percent, led by Brookfield Asset Management (BAMa.TO), which climbed 2.4 percent to C$33.16, and insurer Manulife Financial (MFC.TO), which gained 1.6 percent to C$17.52.
 Elvis Picardo, a strategist at Global Securities in Vancouver, said investors still appear to be in a buying mood, noting the U.S. Dow Jones industrial average .DJI pushed to within a few points of the 12,000 level on Monday, the first time it has been that high since mid-2008.
 The upcoming rush of earnings, which will begin in earnest this week in Canada, will be key to determining whether the market can sustain further gains.
 Canadian National and grocer Metro Inc MRUa.TO are set to report results on Tuesday.
 “Investors are waiting for stocks to deliver in terms of the earnings, because expectations are quite high,” Picardo said.
 ($1=$0.99 Canadian)                                                                              

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