TSX inches up
TORONTO (Reuters) - Toronto's main stock index eked out a modest gain yesterday as gold prices swept to a record high and copper prices rose, and, after the bell, US shares of Research In Motion jumped on better than expected quarterly results from the BlackBerry maker.
RIM's US stock rose more than six percent after hours.
In Toronto, gold miners were up 1.7 percent, with Barrick Gold, the world's No.1 producer, rising two percent to C$47.12, and Goldcorp Inc. gaining 0.8 percent to C$44.04 as spot gold jumped as high as $1,277.70 an ounce on safe-haven buying.
Copper prices were also up, extending a phase of consolidation just beneath a recent four-month peak, pushing up the index's base-metal miners by one percent. First Quantum Minerals added 2.3 percent to C$65.69.
"(The index) has benefited from flight to gold and the rally in copper futures today, so on a relative basis that's helped insulate the TSX," said Fergal Smith, managing market strategist at Action Economics.
Mr. Smith said stock market gains on both sides of the border were undermined by profit-taking as investors awaited key US inflation data for August today.
"If we see a soft inflation number from the US, that could be the trigger for additional quantitative easing steps from the Fed next week," added Smith, which could in theory boost riskier assets.
The US Federal Reserve's Federal Open Market Committee meets on September 21 and could announce new stimulus measures, such as quantitative easing, to stave off economic slowdown.
Quantitative easing effectively means printing money to buy assets such as longer-term government debt in a bid to drive down borrowing costs.
The S&P/TSX composite index unofficially closed up 28.51 points, or 0.23 percent, at 12,173.35, with five of its 10 main sectors higher.
The index's financial group fell 0.5 percent with Royal Bank of Canada losing 0.3 percent to C$54.34, and Toronto-Dominion Bank dropping 0.6 percent to C$75.72.
Banks rallied earlier this week on a global agreement on new bank capitalisation regulations. Regulators, aiming to prevent a repeat of the international credit crisis, agreed last weekend on rules to raise bank capital requirements. The deal paved the way for Canada's financial watchdog to end a moratorium on bank dividend increases and major acquisitions.