May 30, 2011 / 8:46 PM / 8 years ago

CANADA STOCKS-TSX ends higher as resource issues advance

   * TSX up 32.07 points, or 0.23 percent, at 13,829.66
 * Seven of the 10 main groups higher  (Updates with details, comments)
 By Solarina Ho
 TORONTO, May 30 (Reuters) - Toronto’s main stock index drifted higher on Monday, as energy and materials issues advanced in muted trade.
 Energy stocks led the way, rising 0.68 percent, with Canadian Natural Resources (CNQ.TO) gaining 1.28 percent to C$42.09 and Suncor Energy (SU.TO) up 0.59 percent at C$44.99. The two issues were the most influential gainers and accounted for 0.06 percent of the index’s 0.23 percent rise.
 The materials group, which combined with the energy group make up nearly 50 percent of the index, climbed 0.53 percent. It was powered by fertilizer giant Potash Corp POT.TO, which rose 0.8 percent to C$55.13. Diversified miner Teck Resources TCKb.TO was also an influential gainer, rising 1.31 percent to C$50.98.
 Equinox Minerals EQN.TO, which saw hefty declines on Friday after news that Zambia gave the green light for Barrick Gold (ABX.TO) to take over the copper producer, rebounded 4.47 percent to C$7.94.
 Uranium producers, however, were under pressure after Germany said it plans to shut all its nuclear reactors by 2022, a policy reversal drawn up in a rush after the Fukushima nuclear disaster in Japan. [nN30251640]
 Cameco Corp (CCO.TO) was the most influential decliner, dropping 3.32 percent to C$27.36, while Uranium One Inc UUU.TO fell 2.63 percent to C$3.70.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished the session up 32.07 points, or 0.23 percent, at 13,829.66. Seven of the 10 main groups were in positive territory.
 The index popped higher toward the close after spending much of the afternoon languishing near the unchanged mark. Trade was quiet with both U.S. and UK markets closed for holidays.
 Most of Canada’s biggest banks ended the session lower, dragging the financial index down 0.06 percent.
 Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO) were among the most influential movers on the downside, with Royal slipping 0.45 percent to C$57.10 and TD off 0.36 percent at C$83.24.
 The slide continued a recent retreat by financial issues following weaker than expected earnings and expectations the banks are heading into a tougher part of the business cycle as tighter lending rules and the prospect of higher interest rates depress consumer borrowing. [ID:nN26238530]
 “Investors have been accustomed to regular earnings ... where Canadian banks beat earnings estimates with monotonous regularity,” said Elvis Picardo, analyst and strategist at Global Securities.
 “It’s unusual to find two or three banks missing estimates in the same week, so there’s certainly seems to be some lingering disappointment on that front.”
 ($1=$0.98 Canadian)  (Editing by Rob Wilson)                                        

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