Toronto Stock Exchange on a 3 Year High
For the second straight day Canadian stocks continued their gains to end up with a one-month high, mainly led by resource shares. There were impressive gains by the Toronto stocks following a long holiday weekend, with the easing of concerns over the euro zone. It looks like Greece has made some progress with its debt bailout plan. It was also expected that in order to relieve pressure from Italy and Spain the European Central Bank will purchase bonds.
Officials from the European Central Bank, International Monetary Fund and the European Commission completed their visit to Greece and felt that the country is making progress in finding cuts in budget required to carry on its bailout plans. However, the team warned that much more work has to be done still.
On Tuesday the S&P/TSX Composite Index closed at 11,863.50, up by 1.72 percent or 200.91 points. It touched an intraday low of 11,666.18 and high of 11,874.66.
There was a jump of 4.56 percent in the Metals & Mining Index, piloted by Teck Resources Limited that was up 5.55 percent and First Quantum Minerals Ltd. Higher by 5.43 percent and Lundin Mining Corp. added 1.82 percent.
There was a gain of 0.97 percent in the Financial Index with 1.45 percent increase in Bank of Nova Scotia, 0.47 percent in Royal Bank of Canada, 2.60 percent in Manulife Financial Corp and a gain of 0.56 percent for Toronto-Dominion Bank.
There was a surge of 2.94 percent in the Energy Index with the U.S. crude oil futures gaining 1.6 percent or $1.21 to close at $93.67 per barrel for September delivery on the NYMEX.
In the energy stocks, Talisman Energy Inc. gained 1.35 percent, Canadian Natural Resources Limited went up by 7.33, Suncor Energy Inc. surged 1.90 percent, Husky Energy Inc. increased by 2.24 percent and Encana Corp. ended 4.15 percent higher.
There was a gain of 2.90 percent in the Global Gold Index, even with the December gold futures fell by 0.2 percent or $3.40 to close at $1,612.80 per ounce on the NYMEX. There was an advance of 2.89 percent in the Capped Materials Index.
In the gold stocks, Barrick Gold Corp. gained 3.44 percent, Kinross Gold Corp. went up by 1.16 percent, while Eldorado Gold Corp. saw an increase of 5.51 percent and Yamana Gold Inc. was higher by 1.49 percent.
Potash Corporation of Saskatchewan Inc. Fertilizer manufacturer went up 0.05 percent.
Bombardier Inc. transportation systems manufacturer surged 3.90 percent and Research In Motion Limited, the Blackberry maker moved up by 4.87 percent.
Gran Tierra Energy Inc. the global energy enterprise was up by 5.22 percent even after showing a second-quarter profit of only $0.05 per share or $13.1 million down from $0.11 or $31.6 million a share last year.
CAE, Inc. the aviation-training and simulation products supplier moved up by 0.40 percent after reporting sale of C$42 million or 3 full flight simulators to Air China Ltd.
Telus Corp. the telecommunications corporation showed a minor growth in their second quarter profit of C$1.00 a share or C$328 million as against C$0.98 a share or C$324 million in the previous year quarter. It is expected by the analysts that for the quarter the company will show earnings of C$1.01 a share. Telus Corp. also increased its 2012 revenue guidance from the previous range of C$10.70 billion to C$11.00 billion to between C$10.75 billion and C$11.05 billion resulting in the stock gaining more than 2 percent.