TSX at fresh highs as resource, financial stocks rise - Canadian Commentary

15:51 GMT

May 2008

(RTTNews) - Toronto’s main index soared to a new record intraday high Thursday afternoon as resource stocks surged on higher commodities prices.

The S&P/TSX Composite jumped 180 points to 14,806.32, with financials stocks also providing a big lift. Before skyrocketing in mid-morning dealing, Canadian stocks had seen choppy trading since setting an all-time record closing high on Monday.

Metals stocks are turning in a stellar performance. The Gold Index is up 3.7 percent, with the price of bullion spiking higher by $20.30 to $886.60 an ounce. Base metal miners are up 2.6 percent amid speculation that a new round of consolidation may be on the way as major firms look to capitalize on high commodities prices. Copper for July settlement moved to $3.755, up 7.4 cents on the session.

Energy stocks are up 1.3 percent, led by gains from resurgent First Calgary (FCP.TO) and Interoil (IOL.TO). Crude oil rose sharply this morning, erasing its losses from the day before. Light sweet crude for June delivery moved to $126.48, up $2.26 on the session.

Financial shares are up one percent, with all six of Canada’s big banks moving in the green a day after Royal Bank (RY.TO) revealed it would take additional writedowns of C$855 million.

Before the opening bell, traders were treated to data showing that Canadian manufacturing slumped in March as factory sales retreated 1.6 per cent to $49 billion as auto sales fell sharply. Factory sales fell for the first time in 2008.

South of the border, US industrial production fell by much more than expected in the month of April, according to a report released by the Federal Reserve on Thursday, with a notable decrease in factory output contributing to the bigger than expected decline.

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Posted in Categories: Releases, Stocks.