CANADA STOCKS-TSX up 6th day on upbeat data, Potash earnings

Thu Apr 25, 2013 11:16am EDT

* TSX rises 53.18 points, or 0.43 percent, to 12,323.61
    * Eight of 10 main sectors advance
    * Potash climbs 2.4 percent after results

    By John Tilak
    TORONTO, April 25 (Reuters) - Canada's main stock index
extended its gains into a sixth straight session on Thursday,
buoyed by positive U.S. economic data and a
stronger-than-expected earnings report from Potash Corp
.
    Investors were encouraged by data showing the number of
Americans filing new claims for unemployment benefits fell last
week, offering reassurance that the bottom is not falling out of
the labor market. 
    The Toronto market, which posted its biggest jump in more
than eight months on Wednesday, has erased most of the losses
incurred during a massive commodities-led rout earlier this
month.
    "The TSX is staging a bit of a recovery," said Keith G.
Richards, portfolio manager and technical analyst at ValueTrend
Wealth Management. "I see this near-term rally as a near-term
rally, and that's all."
    He expects weakness in banks and commodities to hold the
index back over the next couple of months.
    Despite the gains, the index is down 0.9 percent on the
year, compared with a 10.7 percent rise in the S&P 500.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 53.18 points, or 0.43 percent, at 12,323.61 on
Thursday. It hit its highest point since the huge selloff on
April 15.
    Eight of the 10 main sectors of the index were higher.
    A 2.4 percent gain in Potash and rise in gold shares boosted
the materials sector, which climbed 2.3 percent.
    The price of bullion hit a 10-day high, lifted by a weak
dollar and strong physical buying. 
    Potash said it was abandoning efforts to take over Israel
Chemicals Ltd because of strong opposition in Israel.
The fertilizer giant also reported a stronger-than-expected 13
percent rise in profit after renewed sales to China and India.
 
    "Potash has got near-term upside," Richards said. "Positive
news on the stock is going to push it a bit."
    Energy shares rose 0.5 percent, reflecting a rise in the
price of oil. 
    Financials, the index's most heavily weighted sector, gave
back 0.2 percent.
    In other company news, Open Text Corp reported a 25
percent rise in third-quarter adjusted profit as its cloud-based
services business expanded. The business software maker's stock
added 9.1 percent to C$63.02. 
    Shares of Imperial Oil Ltd climbed 1.4 percent
after Canada's No. 2 oil producer and refiner reported a
first-quarter profit.
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