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TSX rises, led by gold and energy stocks

TSX rises, led by gold and energy stocks

TORONTO: Canada’s main stock index rose on Thursday as resource stocks rose and Bombardier Inc rallied after winning a large plane order, while the financials group retreated.

Some of the most influential movers on the index included gold stocks. Barrick Gold Corp rose 3.8 percent to C$21.78, while Goldcorp Inc was up 4.2 percent at C$23.54 after reporting on Wednesday better-than-expected earnings.

Spot gold rose 0.8 percent as the Bank of Japan held off from expanding monetary stimulus, boosting the yen versus the dollar, and after the Federal Reserve signaled on Wednesday that it was in no rush to tighten monetary policy.

The overall materials group, which includes precious and base metals miners and fertilizer companies, added 2.2 percent. Energy stocks rose 0.9 percent as oil prices set new 2016 highs. Suncor Energy Inc advanced 1.8 percent to C$36.91, while US crude prices were up 0.3 percent to $45.47 a barrel.

Bombardier Inc rose 3.5 percent to C$2.08, having touched its highest since July 8 last year of C$2.28.

The company won a multibillion dollar order for its CSeries passenger jets from Delta Air Lines, enhancing the new planes’ credibility in international markets and boosting prospects for the loss-making company to return to profitability.

At 11:10 a.m. EDT (1510 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 42.78 points, or 0.31 percent, to 13,930.44. Last week it reached its highest in nearly six months at 13,971.83.

Six of the index’s 10 main groups were higher. Shares of BCE Inc rose 1.1 percent to C$58.81 after the telecom and media company reported a slightly better-than-expected quarterly profit as it added more wireless customers and earned more for each one.

Valeant Pharmaceuticals International Inc rose 2.4 percent to C$45.16. Activist investor William Ackman promised US lawmakers on Wednesday he will urge the company’s board to reduce the high prices of four life-saving drugs now at the heart of two congressional probes.

The financials group fell 0.5 percent, including losses for heavyweight bank stocks.

Bank of Nova Scotia fell 0.7 percent to C$64.99, while Bank of Montreal was down 0.6 percent at C$81.16. Potash Corp of Saskatchewan fell 1.9 percent to C$22.66.

The world’s biggest fertilizer company by capacity cut its full-year profit forecast due to weak demand and lower prices.

Copyright Reuters, 2016

Courtesy : BRecorder



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