Toronto stocks finished higher on Friday as rising gold prices and stronger energy issues helped the resource-heavy index scrape out a winning week. The Toronto Stock Exchange S&P/TSX composite index rose 10.20 points, or 0.11 percent, to close at 8,896.37. For the week, the key index rose 0.3 percent. "We've had a couple of bad weeks for the oil stocks so I think when you've got the commodity price stabilising, or even up a bit, it's natural to see a bounce back in the stocks," said Peter Arender, portfolio manager at Acker Finley.
"We're seeing some continued buying in some of these materials stocks and gold is stronger today, so it's natural to see strength there."
Even though US crude oil futures slid 10 cents to $47.32 a barrel, the prospect that cold weather in the coming months cold boost heating demand helped to lift the energy index to its highest close in two weeks.
EnCana Corp rose 70 Canadian cents, or 1 percent, to C$62.80, while Petro-Canada shares finished up C$1.03, or 1.6 percent, at C$65.51. The materials sector, home to gold-mining issues, rose 1.8 percent to lead all sectors, while the telecoms group was next in line with a gain of 1.4 percent. Five of the TSX's 10 main subindexes finished higher.
Toronto's gold-mining index rose 2.35 percent as a weaker US dollar helped the price of gold finish just off a 16-year peak. A lower US dollar generally boosts gold prices because the metal is priced in US dollars.
Barrick Gold Corp shares closed 59 Canadian cents, or 2 percent, up at C$27.64, while Placer Dome Inc rose 37 Canadian cents, or 1.4 percent, to C$26.57.
The market's gain was held in check as investors unloaded shares of heavyweight Nortel Networks Corp because of another delay of its financial restatement and concern that more bad news could be coming.
Shares of Nortel, which makes up about 2 percent of the main index, fell 46 Canadian cents, or 11 percent, to C$3.58, while Research In Motion dropped C$1.72, or 1.7 percent, to C$98.60.
Toronto's key index has moved higher in the final quarter in nine of the past 10 years, and many experts say current conditions seem to be pointing toward another positive finish to the year.
"Things are relatively healthy," said Bruce Murray, executive vice-president at McLean Budden. "Fundamentals are good, valuations are okay, the economy is growing along and corporate profits and balance sheets are in good shape."
Market momentum was comfortably positive as 806 issues advanced and 540 declined on a robust volume of 301 million shares valued at C$3.89 billion.
The blue-chip S&P/TSX 60 index finished flat at 494.03.
US markets finished higher because of a stronger quarterly profit from computer maker Dell Inc and the resumed decline in the price of oil.
The Dow Jones industrial average rose 69.17 points, or 0.66 percent, to 10,539.01, while the Nasdaq composite index climbed 24.07 points, or 1.17 percent, to 2,085.34.
Comments
Comments are closed.