The Toronto stock market was higher Monday, underpinned by high hopes for financials a day before the big banks start reporting quarterly earnings.
U.S. markets were shuttered for the Memorial Day holiday while markets in Britain were closed for a bank holiday.
Toronto's S&P/TSX composite index gained 79.74 points to 10,073.16 after gaining 144 points last week as the spring rally continued to attract buyers hopeful of an economic turnaround later this year.
That rally has sent the main Toronto index up by 32% since the lows of March 9.
The TSX financial sector was up as Bank of Montreal, which reports on Tuesday, moved up 96 cents to $41.83.
CIBC, Scotiabank and TD Bank report Thursday while Royal Bank issues earnings on Friday. All four banks were up sharply even though earnings per share for the group are expected to be down from a year ago - by perhaps 8-20% overall, analysts project - because of slower revenue growth and higher loan-loss provisions in a dreary economy.
The telecom sector also buoyed the TSX, as BCE Inc. shares were 66 cents higher to $24.57. Sources told the Globe and Mail that the Ontario Teachers' Pension Plan sold much of its stake in the telecom company on Friday - 30.6 million shares worth $713-million.
The Toronto energy sector was flat as oil prices slipped ahead of a meeting by the OPEC cartel later in the week. The New York Mercantile Exchange was closed for floor trading but the July contract was 46 cents lower to $61.21 U.S. a barrel in electronic trading.
The Organization of Petroleum Exporting Countries meets on Wednesday in Vienna to discuss a possible production cut to firm up prices.
Imperial Oil Ltd. shares rose 17 cents to $42.21 after it announced it is going ahead with the delayed Kearl oilsands project in northern Alberta at an anticipated cost of $8 billion.
Shares in oilpatch junior Sabretooth Energy Ltd. soared $1.04 or 244% to $1.48 after the company announced a $9.4-million private placement, appointed a new board of directors and management team and acquired a private oil and gas company.
The base metals sector was a drag, as Sherritt International declined 11 cents to $5.10 while Ivanhoe Mines shed 64 cents to $5.85 over the fate of a draft agreement for the $3-billion Oyu Tolgoi mining project in Mongolia, which Ivanhoe is set to develop with Rio Tino.
Concerns mounted after Mongolia's opposition Democratic Party candidate Tsakhiagiin Elbegdorj - who promised to obtain a greater share for individuals of the country's mineral wealth - won the presidential election.
South Africa's mining ministry has granted formal approval for the Eloff coal project, which is half owned by Homeland Energy Group Ltd. and half the Canadian coal company's partner. Homeland shares surged three cents or 15.8% to 22 cents.
Rare Element Resources Ltd. a Vancouver-based mineral developer, saw its stock soar 40 cents or 42.8% to $1.35 on the TSX Venture Exchange, but the company said there was no material undisclosed news to warrant the market jump.
In other Canadian corporate news, Solar panel grade silicon producer Timminco Ltd. has reached a supply agreement with German solar cell producer Q-Cells SE. Timminco shares after running up 46%. Upon the resumption of trading, its shares stepped back and were up 60 cents or 48.8% to $1.83.
WestJet shares moved down 37 cents to $12.11 after it said there will be a delay on reaching a codesharing agreement with U.S. airline Southwest after the U.S. airline decided it couldn't spend any money to develop the deal. Westjet says it remains committed to expanding into the United States and says codesharing is only one element of that plan.
Air Canada has struck a deal with a major credit card processor that will lower the amount of unrestricted cash the airline is required to have on hand to $800 million. The carrier says the agreement will help it maintain financial stability during the economic downturn. Its shares traded up three cents to $1.30.
The Canadian dollar eased off 0.26 cents, to 89 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, gainers beat losers eight to five, led by financials, ahead 2.2%, telecoms, up 1.9%, and real-estate stocks, ahead 1.4%.
The worst off of the losers was metals and mining stocks, declining 1.2%, followed by industrials, and gold, skidding 0.6% each
The TSX Venture Exchange was flat at 1,096.43 while the Nasdaq Canada Index backslid 6.78 points to 695.93.
