Toronto’s stock market was higher Wednesday as investors bought up commodity stocks on hopes that strong manufacturing figures from the U.S. and China will translate into improved economic activity and higher demand for metals and oil.
The S&P TSX Composite Index remained 83.15 points by noon to 11,997.01, still within sight of the psychologically important 12,000 mark.
Among energy issues, Suncor Energy gained 96 cents to $33.27 while Canadian Natural Resources climbed 73 cents to $35.03.
Metal stocks also advanced with the December copper contract on the Nymex up 11 cents to $3.48 U.S. a pound. The base metals index gained strength, with Teck Resources ahead $1.75 to $37.42 and Western Coal Corp. improving by 33 cents to $4.33.
The financial sector gained as Royal Bank gained $1.03 to $52.03 and Manulife Financial climbed 29 cents to $12.16.
Among gold issues, Barrick Gold Corp. declined $1.95 to $48.
On the earnings front, transportation giant Bombardier Inc. reported that its second-quarter profits dropped to $148 million U.S. from $202 million U.S. a year earlier on lower sales, with the aerospace division dragged down by a sluggish global economy.
The Montreal-based company said earnings amounted to eight cents per share, which was in line with expectations and its shares were up 11 cents at $4.55.
In other corporate news, Uranium One Inc. says its shareholders have approved the sale of a controlling interest in the company to Russia’s state-owned ARMZ.
The deal will see Uranium One issue 356 million common shares, worth about $1.3 billion at their most recent market price, to JSC Atomredmetzoloto, also known as ARMZ. In exchange, Uranium One will acquire interests in two Kazakhstan uranium mines plus $610 million U.S. in cash. Its shares were off two cents at $3.50.
Convenience store operator Alimentation Couche-Tard shares rose $1.11 to $24 as the company again increased its bid for Casey’s General Stores in the U.S., by 50 cents a share to $38.50 U.S. per share in cash. The Montreal-area company also said it has secured financing of up to $1.5 billion.
The Canadian dollar gained 1.39 cents to 95.27 cents U.S.
ON BAYSTREET
All but three of the 14 TSX subgroups were still higher at lunch time. Metals and mining stocks climbed 4.5%, global base metals surged 3.8%, and industrials gained 2.1%.
The three laggards were gold, down 2.9%, materials, off 1.4%, and telecoms, sliding 0.5%.
The TSX Venture Exchange advanced 10.34 points to 1,509.97, while the Nasdaq Canada index had 17.78 points more pep to 566.05.
ON WALLSTREET
In New York, equities rallied Wednesday, after surprisingly strong data on U.S. and Chinese manufacturing activity overshadowed a weaker-than-expected employment report.
The Dow Jones industrial average climbed 243.25 points, or 2.4%, at midday to 10,257.97
The S&P 500 index garnered 28.95 points to 1,078.28. The tech-rich Nasdaq composite index marched ahead 58 points to 2,172.03.
General Motors said auto sales in August declined 25%, weaker than expected. Other automakers are due to report sales figures throughout the day, including Ford, Toyota and Chrysler.
Shares of Burger King Holdings jumped 14%, following a report that the fast food chain is considering a possible sale to buyout firms. The Wall Street Journal reported that that private equity firms that have expressed interest in buying Burger King include Britain's 3i Group.
Apple's stock was up 2.3% as investors geared up for the company's annual music-themed special event. CEO Steve Jobs is expected to unveil its newest iPods and advances in the iTunes music store.
Shares of BP climbed 3.8% as the oil giant said it has agreed to sell its interests in ethylene and polyethylene production in Malaysia to government-owned Petronas for $363 million U.S. in cash.
Stocks opened sharply higher, following a report that showed a rebound in China manufacturing.
In addition, stronger-than-expected economic growth in Australia helped fuel optimism about the global economy.
But the rally really gained momentum after the Institute for Supply Management's (ISM) said its index of manufacturing activity rose to 56.3 in August. Economists were expecting the index to fall slightly from July's number of 55.5. Any number above 50 indicates growth in the sector.
Elsewhere on the economic front, payroll processing firm ADP showed that employers cut 10,000 jobs in August. Economists were expecting private sector employers to add 13,000 jobs during the month, after adding 37,000 in July.
Separately, planned job cuts plummeted to a 10-year low in August, as employers shed 34,768, down 17% from the previous month, according to outplacement firm Challenger, Gray & Christmas.
Other reports on Wednesday included construction spending, which fell 1% in July, versus a forecasted 0.7% decline.
Treasury prices settled back, raising yields for the benchmark 10-year note to 2.60% from Tuesday’s 2.48%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil gained $2.05 to $73.97 U.S.
Gold prices eased off three dollars to $1,247 U.S. an ounce.
