CANADA STOCKS-TSX at 2-year peak as China data boosts resource stocks

Fri Oct 18, 2013 11:09am EDT

* TSX up up 69.97 points, or 0.54 percent, at 13,106.33
    * Bombardier gains as Chinese firm may double jet order
    * Real estate stocks gain in low-rate environment

    By Alastair Sharp
    TORONTO, Oct 18 (Reuters) - Canada's main stock index opened
higher on Friday, hitting a two-year peak, as industrial and
resource stocks gained on data showing the Chinese economy, the
world's second-biggest, grew at its fastest pace this year. 
    Investors pushed aircraft maker Bombardier up 2.6
percent to C$5.12 after it said a Chinese company may double its
total order of new jetliners. 
    "No question the worst is over in China. Things have
stabilized and are now on the upswing and that is very important
for worldwide growth," said Barry Schwartz, a portfolio manager
at Baskin Financial Services.
    Third-quarter growth in China, the world's second-biggest
economy, was 7.8 percent from a year ago, its quickest pace for
the year, thanks largely to investment. 
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 69.97 points, or 0.54 percent, at 13,106.33 by
mid-morning. The index is on track for a more than 1.5 percent
gain on the week and is at its highest since July 2011.
    All ten of Canada's main sectors advanced in morning
trading, with some of the biggest gains coming from the
heavyweight financial and energy sectors, while slipping gold
miners tempered gains for the materials sector.
    Baskin's Schwartz said Canada's banks and real estate
investment trusts (REITs) have room to rally further.
    "Interest rates are now back to where they were before the
taper talk, yet the REITs aren't," he said.
    Riocan Real Estate Investment Trust gained 1.6
percent to C$25.75 and Dundee Real Estate Investment Trust
 added 1.6 percent to C$29.52.
    Schwartz said that after the distraction of the U.S. debt
crisis, investors should be focused on interest rates, inflation
and stock valuations, and that each factor was looking prime for
improvement in Canada.
    "Stocks are still the shiniest gold coin in a tarnished box
of treasure," he said.
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