TSX inches higher
TORONTO (Reuters) - Toronto's main stock market index closed slightly higher yesterday as prices firmed for important Canadian exports like gold and oil.
Energy shares gained as the price of crude advanced above $80 a barrel, pushing Suncor Energy, Canada's biggest oil company, up 2.03 percent to C$31.63.
Gold-mining stocks added to Tuesday's gains after the precious metal climbed to a 6-½ week high. Yamana Gold jumped 2.85 percent to C$11.53, while Barrick Gold rose 1.22 percent to C$41.45.
The Toronto Stock Exchange's S&P/TSX composite index rose 24.54 points, or 0.21 percent, to 11,852.85. Half of the index's 10 main groups advanced, including a 1.12 percent gain in the materials group, home to the gold producers.
The heavyweight financials were one of the weaker sectors yesterday with a mixed performance from the big banks. Royal Bank of Canada cut into the TSX's gains as its results were weaker than some expected, and paled in comparison to rival banks that have already reported.
Royal Bank, Canada's largest, shed 1.77 percent to C$57.21.
"Unfortunately, it didn't beat the street like BMO, CIBC, and National Bank did and so that's selling off today and taking the banks down with it," said Barry Schwartz, portfolio manager at Baskin Financial Services.
Toronto Dominion Bank, which reports results today, was up 0.13 percent at C$68.36, but Bank of Nova Scotia was off 0.1 percent at C$48.81.
Schwartz said a decline in loan losses is a positive signal for the economy, suggesting Canadian banks may have rounded the corner from recession-linked credit woes.
February reports that showed private sector employers cut fewer jobs and the US service sector expanded added to improved sentiment about the U.S. economic recovery ahead of tomorrow's non-farm payrolls report. "People are still concerned that the recovery is quite fragile," said Michael Sprung, president at Sprung & Co. Investment Counsel, adding that concern about Greece lingers.
The Greek government unveiled 4.8 billion euros worth of new austerity measures on Wednesday designed to meet European Union (EU) demands for extra savings to help ease the way for any EU rescue from the threat of default.