December 29, 2010 / 9:32 PM / 8 years ago

CANADA STOCKS-Materials issues help lift TSX to 2-year peak

* TSX rises 66.01 points to 13,449.17

* Miners, fertilizer firms lead index higher

* Potash Corp surges 4.5 percent (Updates to close, adds details, quotes)

By Claire Sibonney

NEW YORK, Dec 29 (Reuters) - Toronto’s main stock index rose on Wednesday, hitting a two-year peak on the back of a broad rally among miners and fertilizer companies, including Potash Corp of Saskatchewan POT.TO.

The materials group led the gains, advancing 2.2 percent, as copper climbed to record highs in Europe and gold edged above $1,400 an ounce.

Barrick Gold (ABX.TO) was up 2 percent to C$53.13, while Teck Resources TCKb.TO rose 2.6 percent to C$59.91.

Fertilizer producer Potash Corp jumped 4.5 percent to C$152.56, getting a boost from speculation that corn and soybean futures would rise further next year. Farm products company Agrium Inc AGU.TO shot 4.3 percent higher to C$90.22.

“Sentiment certainly seems to be positive but I think we definitely need to keep in mind that we have a couple more trading days to go before the end of the year and volumes are extremely light,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

“This is typically how the markets end, but January tends to be a different story. The expectations are a little more realistic coming into the beginning of the year.”

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 66.01 points, or 0.49 percent, at 13,449.17. It was the index’s highest close since August 2008.

Canadian markets were closed Monday and Tuesday for the Christmas holidays, and market players said some of the gains were from the TSX playing catch-up to buoyant U.S. markets.

The TSX has gained almost 4 percent so far this month and almost 15 percent for the year.

“We are looking at 2011 being more of a continuation of 2010 ... a new year but not necessarily a new story,” said Stephen Wood, chief investment strategist at Russell Investments.

“If you look at the U.S. which is probably the single most important non-Canadian economy to a Canadian perspective, I think the U.S. has a chance of being one of the more positive surprises for 2011.”

Among the decliners, the technology group was off 0.5 percent with BlackBerry maker Research In Motion RIM.TO slipping 1.2 percent to C$58.15.

The heavyweight energy and financial sectors were little changed.

$1=$1 Canadian Editing by Rob Wilson

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