The Toronto Stock Exchange's main index
pushed almost 1 percent higher on Friday as it rode the
strength of resource issues, which benefited from firm
commodity prices.
Energy companies got a boost as crude finished a see-saw
session higher. Canadian Natural Resources gained C$1.99, or
2.1 percent, to C$97.24, while Imperial Oil rose C$1.05, or 1.9
percent, to C$57.75.
The oil and gas group added 1.4 percent overall, while the
resource-laden materials sector pushed up 2.4 percent with help
from an advance in precious metals prices.
Agnico-Eagle Mines climbed C$2.39, or 3.5 percent, to
C$70.35, and fertilizer company Potash Corp of Saskatchewan was
up C$2.75, or 1.4 percent, at C$197.33.
The S&P/TSX composite index closed up 137.56 points, or
0.94 percent, to 14,714.73 with six of its 10 main sectors in
an upswing. The benchmark had briefly surged more than 200
points in the late afternoon, before paring gains.
The financial sector contributed a lift of 0.5 percent
following a bout of quarterly results from the major banks
through the week.
Kate Warne, Canadian market strategist at Edward Jones in
St. Louis, Missouri, said the banks largely came in as
expected, with the exception of Canadian Imperial Bank of
Commerce, which reported a big loss on charges for worsening
structured-credit positions.
The financial sector has been beaten up by fallout from the
credit crunch, but Canadian banks have not seen the massive
writedowns that U.S. and overseas institutions have had to
take.
"I think there's some relief just because there's always
some worry, even though everyone's expecting them to increase
reserves and provisions for loan loss," said Warne.
"But, other than CIBC, there were no major surprises."
On Friday, Toronto-Dominion Bank rose C$1.94, or 2.8
percent, to C$71.89, and National Bank of Canada gained C$1.25,
or 2.4 percent, to C$54.33.
On the downside, the technology group gave up 1.2 percent,
with Celestica off 58 Canadian cents, or 6.2 percent, at
C$8.78.
The market largely ignored data that showed Canada's
economy shrank unexpectedly in the first quarter for the first
time in five years. The contraction could leave open the
possibility of additional Bank of Canada interest rate cuts.
"The market has entirely ignored the GDP, and I think it's
more focused on the strength that we're seeing with fewer
concerns about weakness in the global economy, rather than
worries about how weak the Canadian economy is," said Warne.
The composite ended the week little changed, off just 0.1
percent, but it jumped 5.6 percent for the month in which it
reached a record over the 15,000 level for the first time.
Market volume on Friday was 427 million shares worth C$8.5
billion. Advancers outpaced decliners 1,078 to 521. The blue
chip S&P/TSX 60 index closed up 8.81 points, or 1.01 percent,
at 878.42.
In New York, tech shares were boosted by solid results from
computer maker Dell Inc, which raised optimism over business
and consumer spending, and helped the tech-heavy Nasdaq
composite index up 14.34 points, or 0.57 percent, to 2,522.66.
The Dow Jones industrial average ended slightly lower as
the gain in oil prices hurt sentiment and highlighted worries
over U.S. inflation. The Dow closed down 7.90 points, or 0.06
percent, at 12,638.32.
($1=$0.99 Canadian)
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