The Toronto stock market gained momentum Wednesday afternoon as oil prices climbed, metal prices sent mining stocks higher and investors continued to assess the economic toll of Japan’s earthquake and tsunami.
The S&P/TSX Composite Index gained 87.18 points to greet the close at 14,087.18
The Canadian dollar inched up 0.02 of a cent at 102.1 cents U.S., as it appeared increasingly likely that Canadians will be heading to the polls after the three opposition parties turned their thumbs down Tuesday on the Conservative government’s new budget.
Oil prices rose, but the energy sector was, down, with Suncor Energy down 62 cents to $44.09 while Imperial Oil declined 54 cents to $50.00.
Oil has jumped 24% since Feb. 14 as markets particularly worry that unrest could spread to Saudi Arabia.
The base metals sector gained strength as the May copper contract in New York ahead 12 cents to $4.43 U.S. a pound, partly because investors reckon that massive rebuilding in Japan will spur demand for the metal used extensively in construction. First Quantum was up $5.19 to $128.37 and Equinox Minerals jumped 34 cents to $5.34.
Teck Resources lost 14 cents to $51.93 as the Vancouver-based miner said that a labour disruption and tough weather conditions have forced it to lower its annual coal and copper sales guidance.
The gold sector was up as geopolitical concerns pushed the April gold contract on the Nymex to a fresh record close. Goldcorp Inc. gained $1.70 to $48.84 while Barrick Gold Corp. rose $1.80 to $51.02.
Gammon Gold Inc. shares gained 60 cents to $9.60 as the miner reported fourth-quarter net income of $23.5 million U.S., up 73% from the year-earlier period and ahead of analyst estimates by a wide margin.
Financials were mainly higher with CIBC ahead $1.19 to $85.50 while TD Bank climbed 75 cents to $85.30.
In other corporate news, Intertape Polymer Group Inc. shares were off four cents to $1.18 after it said it will close its operations in Brantford, Ont., by June due to a prolonged strike that has made the plant unprofitable. The Montreal-based company reported a net loss of $43.4 million U.S. or 74 cents per share in the fourth quarter, with $180 million U.S. of sales.
Shares in luxury diamond retailer Harry Winston ran up 69 cents to $14.65 as it predicted a bright future with higher sales and profitability as demand for high-end goods continues to grow while the global economy rebounds.
On Tuesday, Harry Winston said a 61% surge in sales during the holiday season helped it along to a quarterly profit of $9.9 million U.S., or 12 cents per share. That compared to a loss of $3.4 million U.S., or four cents per share, a year ago, which blew past analysts’ estimates of seven cents per share.
ON BAYSTREET
The TSX Venture Exchange gained 20.88 points to 2,318.01, while the Nasdaq Canada index regained 3.11 points to 789.04
In Toronto, all but two of the 14 subgroups were higher on the day. Gold jumped 3.4%, while materials improved 2.8% and global base metals picked up 2.6%.
The two laggards were energy stumbling 0.7%, while industrials tripped 0.1%.
ON WALLSTREET
In New York, stocks advanced during the final hours of trading Wednesday, as investors shrugged off earlier jitters amid rising turmoil in the Middle East and Japan's nuclear issues.
The Dow Jones industrial average moved 67.39 points higher by the closing bell to 12,086.
The S & P 500 recovered 3.77 points to 1,297.54. The tech-rich Nasdaq Composite Index moved 14.43 points lower to 2,698.30.
Traders spent most of Wednesday and the previous session on the sidelines, unwilling to place any big bets as global concerns continue to linger.
But with a lack of new developments Wednesday, investors began to step back into the market.
A disappointing housing report didn't help matters much, but after a brief blip, investors largely shrugged off the data, which showed sales plunged to a record low last month.
Shares of General Mills dropped 2%. The cereal maker, which raised prices in October, said its fiscal third-quarter earnings rose 18%, though U.S. sales were slightly lower.
Adobe Systems was the biggest decliner on the S&P 500 and Nasdaq. Shares sank 5.5% after the software maker lowered its second-quarter earnings forecast, saying the earthquake and tsunami in Japan will curb sales.
Shares of homebuilder PulteGroup rose 3% after Goldman Sachs raised its price target on the stock.
Jabil Circuit's stock jumped 11%, leading the gainers in the S&P 500. The electronics manufacturing company posted a profit and sales figures above expectations late Tuesday.
On the economic front, new home sales fell 16.9% in February, to the lowest level since the government began keeping records in 1963, as the reeling housing market failed to generate any momentum.
Sales fell to an annual rate of 250,000 from the revised 301,000 in January, according to the Census Bureau's monthly report released Wednesday. The rate was down a whopping 28% from the 347,000 of February 2010.
The price on the benchmark 10-year U.S. Treasury fell back, raising yields to 3.35% from Tuesday’s 3.33%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained 64 cents to $105.61 U.S. a barrel.
Gold futures for April delivery rose $10.40, or 0.7%, to $1,438 U.S. an ounce as unrest in the Middle East and concern about Europe's debt crisis spurred demand for an alternative investment, said Samana.
Silver prices rose to the highest levels in over 30 years, topping $37 U.S. an ounce. Platinum, palladium and copper prices also advanced.
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