The Toronto stock market moved higher Monday as data showed the Canadian economy continuing to make a robust recovery from recession while the market found support from higher commodity prices.
The S&P TSX Composite Index closed 91.55 points higher to 11,762.99
Meanwhile, investors are also looking forward to the release of May employment data for both Canada and the U.S. on Friday.
The base metals sector gained ground as copper for July was unchanged at $3.11 U.S. in electronic trading on the New York Mercantile Exchange. Teck Resources gained 61 cents to $36.41 and HudBay Minerals rose 18 cents to $12.12.
The July crude contract on the Nymex rose 47 cents to $74.44 U.S., taking the energy sector up, Suncor Energy climbed 23 cents to $32.31 and Canadian Oil Sands Trust advanced 43 cents to $28.60.
The industrials sector moved ahead with Canadian National Railways up $1.06 to $61.46. But shares in Bombardier Inc. were down four cents at $4.85 even as the transportation giant was awarded a $241-million contract to supply a monorail system for the Saudi capital city’s new financial district.
Consumer discretionary stocks were also supportive with shares in auto parts maker Magna International ahead 78 cents to $72.00.
The gold sector was negative as bullion prices moved slightly higher with the August gold contract in New York ahead $2.90 to $1,217.90 U.S. an ounce.
The showing on the TSX on the final day of May trading comes as investors survey what has been a decidedly negative month as investors remained focused on Europe’s debt crisis.
The market is off 5% from the 2010 highs that were registered on April 26 on worry about slowing economic growth in the euro-zone and the future of the euro currency itself.
Analysts characterized the markets as volatile and saw investors holding back as doubts remain the European Union can contain a debt crisis that has sent the euro to four-year lows.
At the same time, they don’t seem to know how long this crisis will continue to cast a pall over markets.
In other corporate news, Jazz Air flight attendants have voted 99.5% in favour of a strike. The Canadian Flight Attendants Union says the cabin crew for the airline could go on strike, or be locked out, as early as June 16. Its units dropped one cent to $4.21.
Ram Power Corp. has signed a letter of agreement to acquire Sierra Geothermal Power Corp. in a share-swap valued at $28.4 million. The companies announced that the non-binding agreement will allow Ram to buy all outstanding shares of Sierra Geothermal.
Sierra’s stockholders would receive one Ram share for every 12 common shares tendered. Ram shares were off four cents to $2.52 while Sierra shares jumped two cents to 20 cents.
In economic news, Statistics Canada said real gross domestic product increased 1.5% in the first quarter of 2010, after growing 1.2% in the previous quarter. Helped by growth in spending on housing, consumer goods and services, final domestic demand advanced 1.1%.
It also said that real GDP advanced 0.6% in March, recording gains for a seventh month. On an annualized rate, real GDP grew 6.1% in the quarter, after advancing 4.9% in the previous quarter.
In another report released today, Statistics Canada said Industrial Product Price Index rose 0.3% in April, following a 0.4% decline in March. The growth was mainly driven by a 3.7% increase in primary metal products. The agency added that the Raw Material Price Index increased 1.7% in April.
The Canadian dollar tacked on 0.85 cents to 95.87 cents U.S.
ON BAYSTREET
Ten of the 14 TSX subgroups were ahead on the day Monday. Metals and mining remained the champion, gaining 1.6%, while energy advanced 1.5% and consumer discretionaries moved up 1%.
Information technology and health-care each subsided 0.4% to be the worst off of the four losing groups, while global base metals stepped back 0.2%.
The TSX Venture Exchange improved 10.63 points to 1,514.07, while the Nasdaq Canada index moved 8.54 points lower to 690.77
ON WALLSTREET
American markets were closed for the Memorial Day holiday.
