CANADA STOCKS-TSX climbs as U.S. data buoys mood

Thu Jun 27, 2013 5:02pm EDT

* TSX rises 53.88 points, or 0.45 percent, at 12,005.78
    * Eight of 10 main sectors advance
    * Aimia jumps after Aeroplan deal with TD Bank
    * BlackBerry slips ahead of earnings report

    By John Tilak
    TORONTO, June 27 (Reuters) - Canada's main stock index
advanced on Thursday, helped by gains in most major sectors, as
U.S. economic data lifted investor sentiment and eased concerns
about the recovery in the world's largest economy.
    At the same time, the market cheered comments from a Federal
Reserve official who said the U.S. central bank's asset
purchases would be more aggressive than the timeline outlined
last week if U.S. economic growth and the labor market turn out
weaker than expected. 
    Further boosting the mood was data showing German
unemployment dropped unexpectedly in June and that Britain did
not suffer a double-dip recession early last year as previously
thought.  
    The index's gains was limited by declines in telecoms
stocks, which fell for the second straight day after reports
that U.S. giant Verizon Communications Inc is looking to
enter the Canadian market.
    On the data front, U.S. consumer spending rebounded in May
and new applications for unemployment benefits fell last week,
suggesting the U.S. economy remained on a moderate growth path.
 
    "The data into the second quarter has continued to show a
nice improvement in the U.S. economy," said Colin Cieszynski,
senior market analyst at CMC Markets Canada.
    "A solid economy that can stand on its feet does not need
quantitative easing," he added. "If the economy improves to a
point where that goes away, it's actually a good thing."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 53.88 points, or 0.45 percent, at 12,005.78.
    Eight of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, rose
more than 1 percent, with gold-mining stocks climbing. Barrick
Gold Corp was up 0.5 percent at C$15.57, and Goldcorp
Inc rose 1.9 percent to C$23.85.
    Energy shares added 0.3 percent, helped by higher oil
prices. Suncor Energy Inc gained 1.3 percent to
C$30.84.
    Financials, the index's most heavily weighted sector, rose
0.2 percent. Bank of Nova Scotia added 0.5 percent to
C$55.82.
    Toronto-Dominion Bank said it has agreed to become
the primary credit card issuer for Aeroplan, an air travel
loyalty program owned by Aimia, which could end rival
CIBC's long-standing partnership with Aeroplan.
    Aimia's shares were up 10.6 percent at C$15.40. CIBC 
rose 0.4 percent to C$75.31, and TD gained 0.5 percent to
C$83.90.
    The telecoms group slipped 0.7 percent. Telus Corp 
gave back 2.9 percent to C$29.82, and Rogers Communications Inc
 lost 3.2 percent to C$40.35.
    Canada's large telecoms players have had it good without any
serious competition except with each other, Cieszynski said. 
    Verizon's entry could potentially be "a pretty big
shakeout," he added. "Verizon is a major company with very deep
pockets, very familiar with competing in the North American
telecoms marketplace."
    BlackBerry slipped 3.7 percent to C$15.05, a day
ahead of its quarterly report.
    Despite Thursday's gains, the benchmark Canadian index is
down 3.4 percent since the start of the year.
    The sentiment for Canadian stocks is "mediocre at best,"
said Philip Petursson, managing director, portfolio advisory
group, at Manulife Asset Management. "I don't think investors
are embracing Canadian equities as they once used to."
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.