* TSX ends up 46.32 points at 12,925.11
* Highest close since Sept. 3, 2008
* U.S. jobs jump, Canadian data shows strength
(Adds quote, company details)
By Jennifer Kwan
TORONTO, Nov 5 Toronto's main stock index ended
at its highest closing level in more than two years on Friday
after jobs data from the United States, Canada's biggest
trading partner, surpassed market expectations.
Six of the index's 10 main sectors were higher, led by the
financials and the materials groups, which were up 0.8 percent
and 0.6 percent, respectively.
Manulife Financial (MFC.TO), the most heavily traded stock
on the market, climbed 4.8 percent to C$14.79. It extended
gains to a third session, as several analysts boosted price
targets on the country's biggest insurer a day after it
reported a smaller than expected loss. [ID:nN04213369]
Big gainers in the materials group included Teck Resources
TCKb.TO up 4 percent at C$49.71, and First Quantum Minerals
(FM.TO), which rose 3.3 percent to C$95.36.
The U.S. economy added many more jobs than expected last
month, and this helped boost commodities, building on the
momentum from the U.S. Federal Reserve's pledge on Wednesday to
launch a $600 billion program to buy government bonds to
stimulate the ailing U.S. economy. [ID:nN04265378]
"We're starting to see some not insignificant job growth
south of the border so that was the big news of the day, and
obviously the market was watching that like a hawk," said Paul
Taylor, chief investment officer at BMO Harris Investment
Recent U.S. economic data, including Friday's 151,000-job
gain for October, has been healthier than expected and this has
raised the possibility that the Fed may not have to do as much
as thought to shore up the economy.
Investors looked past a poor headline figure on Canada's
own employment figures, which showed a rise of just 3,000 jobs
in October [ID:nN05281844], and pushed the Canadian dollar to
parity with the U.S. currency. The underlying details of the
Canadian report were seen as being favorable for a sustainable
economic recovery. [CAD/]
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE soared above 13,000 during the day, but trimmed gains
to finish the session up 46.32 points, or 0.36 percent, at
12,925.11. It was the index's highest closing level since Sept.
It was up 2 percent for the week.
The blue chip S&P/TSX 60 index .TSE60 closed 2.61 points
higher, or 0.35 percent, at 740.34.
Shares of Magna International (MG.TO), the top net gainer,
jumped 6.1 percent to C$99.33 a day after the auto parts maker
made a bevy of investor-friendly announcements and released
quarterly results that blew past analysts' expectations.
Telus Corp (T.TO) rose 3 percent to C$45.73. Strong
wireless growth and record television subscriber additions
helped it post adjusted quarterly earnings on Friday that
handily beat analysts' expectations. [ID:nN05280098]
On the downside, shares in Research In Motion RIM.TO sank
2.6 percent to C$55.65 as investors fretted the BlackBerry
smartphone's stranglehold on corporate communications was being
eroded by rival devices. [ID:nN05208982]
Sid Mokhtari, market technician and director, institutional
equity research, CIBC World Markets, said the relative-strength
index, an indicator that measures the overbought and oversold
conditions for an asset class, showed that the TSX index was
He noted the index could drop in coming sessions to its
50-day moving average at around 12,360.
"We view it constructively. This would be a healthy
check back. We can't go straight up. We need to pause here and
(Reporting by Jennifer Kwan; editing by Peter Galloway)