Canadian stocks rose on Thursday as investors anticipated that Greece’s debt-swap deal would be completed successfully, while the mining and energy sectors found support in higher commodities prices.
The S&P/TSX Composite Index prospered 111.77 points to close the session 12,461.93
The Canadian dollar tacked on 0.56 cents to 100.79 cents U.S., after the Bank of Canada said it was leaving its key rate at 1%.
The bank also noted that economic conditions have improved over the past few weeks, citing "tentative signs of stabilization in European bank funding and sovereign debt markets."
In the powerful metals and mining sector, Ivanhoe Mines shares were up 32 cents, or 1.8%, to $17.93. Gold miner Agrium Inc. increased $1.77, or 2.2% to $82.74.
In the energy field, shares of Suncor Energy, Canada’s biggest energy company by market value, climbed 52 cents, or 1.5%, to $34.24. PetroBakken Energy extended gains to a second session, rising $1.06, or 6.5%, to $17.46.
Canadian Natural Resources Ltd. shares edged up 11 cents, or 0.3%, to $35.25. The oil and gas producer hiked its dividend by 17% and reported a fourth-quarter profit of $832 million, compared to a loss of $309 million a year ago.
Financials acquired momentum, led by a 1.6% rise in the shares of Toronto-Dominion Bank to $81.59. Bank of Nova Scotia also rose, 75 cents, or 1.4% to $53.38.
Canadian Imperial Bank of Commerce shares dipped 18 cents, or 0.2%, to $76.09. Canada’s fifth-largest bank by assets reported a 9% increase in its fiscal-first-quarter profit, but its retail-bank earnings disappointed some analysts.
In the health-care sector, shares of Nordion Inc. recovered from a decline in the previous session to gain 38 cents, or 4%, to $9.87. The health-science firm had reported Wednesday a quarterly net loss.
Shares of CML HealthCare Inc. increased 28 cents, or 2.7%, to $10.85 after the company posted fourth-quarter net profit of $25.4 million, compared to a loss of $30.9 million in the same period a year ago.
Among Canada’s other hot stocks, Dollarama Inc., Canada’s biggest dollar store, rose $1.41, or 3.3%, to $44.38. TD Bank raised its stock rating to buy from hold, saying the company is likely to raise its dividend in 2012, according to Dow Jones Newswires.
NAL Energy Corp. shares rose 37 cents, or 5.1%, to $7.63. The oil and gas company said late Wednesday its fourth-quarter production exceeded internal expectations. TD upgraded the company’s stock to buy from hold, according to Dow Jones Newswires.
But there has also been nervousness about whether Greece can get enough private creditors on side to complete a debt swap that would see those investors swap their Greek bonds for new ones with a 53.5% lower face value, lower interest rates and longer maturity dates. The hope is that by lowering the amount of debt it has to repay, Greece can gradually return to growth.
If not enough investors agree and the bond deal fails, the country could default on its debt in less than two weeks, prompting renewed turmoil in financial markets and knocking confidence in the global economic recovery.
By early Thursday, banks, pension funds and other investors holding more than half the €206 billion total debt in public hands had pledged to take part. New legislation will allow Greece to force holdouts into accepting the deal if overall participation is not high enough.
Investors had until 3 p.m. EST this afternoon to sign up, though official results weren’t expected until Friday morning.
On the economic slate, Statistics Canada’s New Housing Price Index rose 0.1% in January, following a similar increase in December, mostly due to growth in Calgary and Vancouver.
Meantime, Canada Mortgage and Housing Corporation reported that housing starts came in at 201,100 units in February, up from 198,100 units in January.
ON BAYSTREET
The TSX Venture Exchange gained 12.67 points to 1,634.34, while the Nasdaq Canada index moved ahead 5.67 points to 412.56
All but two of the 14 Toronto subgroups were positive by the closing bell. Metals and mining zoomed 2.1%, while information technology stocks soared 1.5% and industrials were 1.4% stronger.
The two laggards were real-estate issues, down 0.2%, and telecoms, 0.1% to the bad.
ON WALLSTREET
In New York, stocks headed higher Thursday as investors grew hopeful that private-sector bondholders are on the verge of accepting a debt-swap deal with Greece.
The Dow Jones Industrials ended Thursday 70.61 points higher to 12,907.90.
The S&P 500 gained 13.29 points to 1,365.92, while the Nasdaq added 34.73 points to 2,970.42
Shares for McDonald's fell after the fast-food franchiser said that same-store sales rose 7.5% in February, but listed several factors that could impact its first-quarter operating income growth.
Anheuser-Busch InBev shares rose after the brewer reported quarterly earnings and sales that topped forecasts, and issued an upbeat outlook.
Shares of AIG slipped a day after the Treasury Department said it was selling $6 billion U.S. worth of its AIG stock at a profit. But AIG still owes the government some $42 billion U.S. from the bailout and it's unclear when that will be repaid.
Green Mountain Coffee Roasters' stock dropped as Starbucks announced that it will "announce a new strategic initiative in the Premium Single Cup Category" later Thursday.
Green Mountain, which dominates the single-serve market with its popular K-Cup, already has a deal with Starbucks to serve K-Cup versions of the Seattle-based chain's coffee and tea products, but Starbucks' statement did not mention Green Mountain's involvement in its new initiative.
Meanwhile, investors are also gearing up for the government's monthly jobs report, which is due Friday morning. Ahead of the highly-anticipated report, data on initial jobless claims and planned job cuts were mixed, but the overall outlook for the labor market remains upbeat.
A survey of 19 economists predicts that the economy added 210,000 jobs in February, leaving the unemployment rate unchanged at 8.3%.
Economically speaking, initial jobless claims for the week ended March 3 totaled 362,000, an increase of 8,000 from the prior week, according to the U.S. government. That was higher than expectations of 355,000, according to a survey of analysts by Briefing.com.
Planned job cuts for the month of February totaled 51,728, according to a report from outplacement consulting firm Challenger, Gray & Christmas released before the opening bell.
That's down from the 53,486 cuts recorded in January.
On Wednesday, payroll processor ADP said the private sector added 216,000 jobs in February -- an improvement from the month prior and roughly in line with expectations.
Treasury prices for the 10-year note sagged, raising yields to 2.01% from Wednesday’s 1.94%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained 55 cents to $106.71 U.S. a barrel.
Gold futures for April delivery rose $13.10 to $1,697 U.S. an ounce.
Hope for Greece stirs stocks
Related Stories
