The Toronto stock market closed higher Friday as investors became more comfortable with Chinese moves to deal with inflation and hoped for a quick resolution to the Irish debt crisis.
The S&P TSX Composite Index added 86.32 points to close the week at 12,956.33
The Canadian dollar gained 0.09 of a cent to 98.24 cents U.S.
Commodity prices were weak after the Chinese government told banks they must hold more reserves to combat inflation, which shot up last month to the highest level in more than two years.
There is also growing expectation China will raise key interest rates soon, as part of the inflation fight. That has sparked fears that China’s economic growth could slow as a result.
There have been many hopes pinned on China and other emerging countries to help pull Western countries out of recession.
In particular, high Chinese demand for commodities has pushed up prices for oil and metals and taken resource stocks on the TSX higher.
Among financial stocks, Bank of Montreal up $1.31 to $60.51 while Royal Bank rose $1.05 to $55.33.
Manulife Financial Corp. shares headed 37 cents lower to $15.32 even as the insurer said it expects to nearly triple its net profits to $4 billion by 2015. Manulife has grappled with billions of dollars in losses since the recession pummelled stock markets, eroding the value of the insurer’s investments.
BlackBerry maker Research In Motion Ltd. also provided lift to the TSX, rising $1.14 to $59.69 and helping send the tech sector up.
In the oil patch, Husky Energy climbed 33 cents to $25.77 while Talisman Energy gained 43 cents to $20.17.
The base metals sector also recovered from early lows by late in the morning with the December copper contract on the Nymex was unchanged at $3.84 U.S. a pound. HudBay Minerals shed 21 cents to $17.81 while Equinox Minerals rose a dime to $5.89.
Gold stocks like Yamana Gold was flat at $11.68.
In corporate news, the federal Competition Bureau wants more than $10 million of penalties levied against Rogers’ Communications Inc. for allegedly using misleading advertising to promote its new Chatr discount talk-and-text mobile brand. Its shares added five cents to $37.15.
Construction and infrastructure development company Aecon Group Inc. has been awarded a $279-million contract by Toronto Transit Commission to extend one of the city’s main subway lines northward. Its shares were up 32 cents to $10.29.
Perpetual Energy Inc. shares rose 10 cents to $4.02 after it said Friday it has sold a group of shut-in gas reserves for $40 million.
There was no major economic news to report in Canada today.
ON BAYSTREET
The TSX/Venture Exchange advanced 8.24 points to 1,995.87, while the Nasdaq Canada index moved higher 12.26 points to 721.77.
In Toronto, all but one of the subgroups improved. Energy and utilities stocks each surged 1%, while financials were 0.8% richer. Only a 0.5% slump by health-care stocks spoiled the mood.
ON WALLSTREET
In New York, stocks closed out a wild week with a lackluster finish: In the final stretch, stocks ended Friday's trading session just above the breakeven point.
The Dow Jones Industrials regained 22.32 points from a day spent largely in negative country, to close the week at 11,203.50.
The S&P 500 was up 3.04 points to 1,199.73. The tech-rich Nasdaq Composite Index tacked on 3.72 points to 2,518.12.
Overall, the three indexes were barely changed from their close a week ago.
With no economic data or major corporate reports on the agenda for Friday, investors backed away from Thursday's rally. Stocks rallied Thursday, with all three major indexes gaining 1.5%, as worries about Ireland's debt woes eased and GM's newly issued stock rallied on its first day of trading.
The Central Bank of China raised banks' reserve requirement ratio by 50 basis points, or half a percentage point. That's the fifth time this year that the central bank has raised the reserves that banks are required to keep in their vaults.
U.S. banks Bank of America and Citigroup both fell more than 1% after the news.
In his speech, Bernanke defended the Fed's asset-buying plan, saying the strategy has worked in the past and could help reduce unemployment in the United States. He also argued that nations need to work together to correct global imbalances, as the world economy recovers at an uneven pace.
On Thursday, officials in Dublin signaled that Ireland is open to accepting aid from the IMF and European Central Bank to shore up its troubled banking sector.
General Motors raised $20.1 billion U.S. in an initial public offering late Wednesday, with shares debuting on the NYSE Thursday. Shares of GM closed at $34.19 U.S. on Thursday, up nearly 4% from the $33 U.S.-a-share offering price. Shares in the carmaker gained seven cents Friday to $34.26 U.S.
Friday turned out to be a yawn, though, as Wall Street took a step back ahead of the Thanksgiving holiday week.
Dell reported late Thursday that booming sales to businesses sharply lifted the computer maker's profit last quarter. Dell shares rose 1.9% Friday.
Shares of Salesforce.com soared 17.4% to a record high Friday after the company delivered sales that far exceeded analysts' expectations and a bullish forecast for the current quarter.
Shares of Del Monte Foods surged 11.7% on reports that private equity firm Kohlberg Kravis Roberts & Co. was in advanced talks to purchase the company.
AnnTaylor Stores advanced 8.5% after the women's clothing retailer beat Wall Street estimates on both its fiscal third-quarter profit and sales.
Foot Locker also announced earnings and revenue that beat estimates, and its shares gained 11.6%.
Shares of Nike rose 4% after the company announced Thursday it will raise its cash dividend 15% to 31 cents U.S. per share.
Nokia shares fell 2.2% after a company executive admitted Thursday that some of Nokia's N8 smartphones were having problems powering on and off.
The price on the benchmark 10-year U.S. Treasury inched up, lowering the yield to 2.87% from 2.90% late Thursday. Treasury prices and yields move in opposite directions.
Oil eased 74 cents a barrel to $81.11 U.S. The price of an ounce of gold trailed Thursday’s close by 67 cents to $1,353.48 U.S.
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