TSX higher on commodities
The Toronto stock market built on the solid gains of the previous session Tuesday morning thanks to a small upswing among mining stocks.
The S&P/TSX composite index was up 36.3 points to 11,903.2 after strong manufacturing data from the U.S. and China raised commodity prices and lifted the main index 121 points.
The Canadian dollar climbed 0.53 of a cent to 96.55 cents US, its highest level since mid-October, as the U.S. currency weakened for a second day. The loonie ran ahead 0.87 of a cent on Monday after comments by U.S. Federal Reserve chairman Ben Bernanke pushed the expectations for interest rate hikes further out into 2010.
The base metals sector ahead 1.49 per cent with the March copper contract in New York up two cents at US$3.42 a pound. Teck Resources (TSX: TCK.B) gained 77 cents to $39.78.
The gold sector climbed one per cent as the February bullion contract in New York rose $8 to US$1,126.30 an ounce. Barrick Gold Corp. (TSX: ABX) gained 43 cents to $42.51.
The market also found strong support from potash producers after Credit Suisse raised Potash Corp. (TSX: POT) to outperform. It said the company along with Uralkali of Russia will lead a rebound among suppliers of the crop nutrient and believes sales volumes in the industry could double this year. Potash shares ran up $5.92 to $122.61 while shares in rival Agrium Inc. (TSX: AGU) advanced $2.11 to $67.65.
The consumer discretionary sector was the biggest percentage decliner, down 0.47 per cent with Shaw Communications (TSX: SJR.B) down 32 cents to $21.18.
Oil prices were slightly higher after the weak American currency helped push oil past the US$80 a barrel level for the first time since early November.
The February crude contract on the New York Mercantile Exchange was 10 cents higher to US$81.61 after surging more than $2 on Monday and the energy sector was ahead 0.14 per cent. EnCana (TSX: ECA) gained 36 cents to $36.07.
In the oilpatch, Noble Energy, Inc. (NYSE: NBL) will pay US$494 million to acquire the Rockies upstream assets of Petro-Canada Resources (USA) Inc. and Suncor Energy (Natural Gas) America Inc. (TSX: SU). The transaction is expected to close in the first quarter and Suncor shares rose 45 cents to $38.75.
The financial sector was also weak as Scotiabank (TSX: BNS) lost 47 cents to $48.46.
In Canadian economic news Tuesday, the industrial product price index increased one per cent in November, while the raw materials price index rose 2.2, mainly due to higher prices for petroleum and metals. Statistics Canada reported that the rebound in the industrial index was the strongest since June 2008.
The TSX Venture Exchange moved ahead 8.31 points to 1,552.24.
New York markets were weak following solid gains on Monday as investors took in some mixed economic data business
Filed under: money by Forest