Toronto's main stock index went for a wobbly ride on Tuesday and ended slightly higher as gains in its heavyweight energy and financial sectors were offset by weaker gold and technology shares. The energy sector, up 1.1 percent, was the biggest gainer as US crude prices settled above $82 a barrel after bright US economic data spurred optimism about recovery in the world's largest energy consumer.
Suncor Energy Inc, Canada's biggest oil company, rose almost 3 percent to C$32.90, while natural gas major EnCana Corp was up 1 percent at C$31.31. "That might be the one bright spot. Everything is semi-shut down now and I think that it's just kind of a ho-hum market," said John Kinsey, a portfolio manager at Caldwell Securities, referring to the Passover holiday this week and the upcoming Easter long weekend.
US consumer confidence rebounded in March, while home prices rose in January for the eighth straight month according to a closely watched housing index, bolstering hopes for a sustainable economic recovery. The index's heavyweight financial sector added 0.2 percent, with Royal Bank of Canada, the country's biggest bank, ahead 0.5 percent at C$59.75, and Toronto-Dominion Bank rising 0.6 percent to C$76.05.
"The banks have all had very good runs, most of them are up 20 percent since the lows," Kinsey said. The head of Royal Bank's wealth management unit said on Tuesday it is looking to build up its asset management business through acquisitions outside Canada, while the chief executive of TD, Canada's No 2 lender, said it was the only big bank in the United States to expand its lending book in 2009.
The Toronto Stock Exchange's S&P/TSX composite index closed 14.49 points, or 0.12 percent, higher at 12,044.21. It was a second-straight session of gains. On the downside, BlackBerry maker Research In Motion tumbled 1.3 percent to C$76.26 following a report that smartphone rival Apple Inc was developing a new iPhone for Verizon Communications.
"Apple's market share of the smartphone market is only 3 percent so they have a lot of room to grow," said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services, adding that should make RIM shareholders nervous.
The tech sector was down 0.2 percent. Higher base metal prices boosted miners such as Teck Resources, which jumped 2.3 percent at C$44.17, but gold-mining stocks were largely down as bullion prices slipped on a stronger US dollar. Goldcorp Inc lost 2.1 percent to C$37.52. Gammon Gold sank 8.8 percent to C$7.88, after the company reported lower fourth-quarter net income as it booked foreign exchange losses and a tax-related charge.