TSX jumps 200 points to new closing high, led by gold stocks

20:27 GMT

May 2008

(RTTNews) - Toronto’s main index accelerated higher in late day trading to set a fresh record closing high on Thursday, led by gains among metals and financial stocks.

After treading water for the past two session’s, the S&P/TSX Composite Index jumped 201.75 points to 14,828.06. Strength was most pronounced among gold stocks, while modest strength in the energy sector contributed to the big advance.

The Gold Index soared 3.6 percent. Gold prices turned higher on Thursday and erased some of the losses it accumulated earlier in the week. June gold delivery moved to $880, up $13.50 on the session. The metal moved to as high as $888.50 in mid-day trading.

Crystallex (KRY.TO) plunged 16 percent amid reports that it will be denied a permit to begin an open- pit gold mine in Venezuela due to environmental concerns.

Light sweet crude for June delivery finished at $124.12, down 10 cents on the session. Oil touched as low as $120.75 in the mid-day before recovering. Earlier in the session, crude hit as high as $126.64.

Base metal miners rose 2.5 percent, helped by higher copper prices. Lundin Mining Corp. (LUN.TO) said Thursday its first-quarter profit rose 51 percent on higher copper and lead prices. Lundin shares rose more than 8 percent.

Ivanhoe Mines (IVN.TO) reported its first quarter loss widened to $63.6 million from $46.8 million the year before. Still, shares rose 6 percent. Sprott Inc. (SII.TO) fell 1.6 percent to C$9.84 on its first day of trading on the Toronto Stock Exchange.

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.