TSX rises as fears of recession lift
TORONTO (Reuters) - Toronto's main stock index rose 1.65 percent yesterday for its sixth straight winning session as optimism that the worst of the global recession has past sparked a broad rally, with energy and other commodity stocks leading the way.
Three of the biggest heavyweight gainers on the index were from the energy patch with oil companies rising as the price of US crude settled up 42 cents at $63.98 a barrel.
Crude pushed up more than six percent last week.
EnCana Corp. was up 2.88 percent at C$58.22, Canadian Natural Resources Ltd. rose 3.48 percent to C$65.20, and Suncor Energy Inc. was up 3.65 percent at C$35.19.
"There has been increasing optimism that the global economy is in turnaround mode here, every data point that comes out seems to confirm that viewpoint," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.
"If the global economy turns around, commodities and energy will be big beneficiaries of that."
The S&P/TSX composite index closed up 171.29 points at 10,540.71.
Nine of the TSX's 10 main groups were higher, with the energy group up 2.37 percent and the mining-heavy materials sector up 2.34 percent.
In the mining group, shares of First Quantum Minerals ended up 11.25 percent at C$69.64, after the company said its second-quarter copper production rose 14 percent from year-earlier levels.
In the health care sector, shares of Labopharm Inc. slumped 24 Canadian cents, or 10 percent, to C$2.14 after the US Food and Drug Administration denied approval of its once-daily depression treatment Trazodone, citing deficiencies at a manufacturing facility.