3 Min Read
* 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.