Markets

TSX rises on Europe optimism, resources

TORONTO : Toronto 's main stock index was firmly higher on Friday morning, buoyed by some positive US earnings news a

Published July 22, 2011 Updated July 22, 2011 04:53pm

2 min

By Muhammad Iqbal

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Resources issues topped the index leaders, with materials up 1.68 percent and the gold mining subgroup rising 1.88 percent. Energy stocks gained 0.28 percent.

The two resource sectors combine to make up roughly 50 percent of the composite index.

Nine of the top 10 most influential stocks on the TSX were resources companies.

Goldcorp topped the list, rising 3.25 percent to C$51.81, while Barrick Gold gained 1.77 percent to C$47.70. Fertilizer giant Potash Corp. was up 2.22 percent at C$58.59. Talisman Energy rose 2.49 percent to C$19.75.

"The gold stocks in general, they're reporting next week and it's expected that by and large they will have a decent quarter," said John Ing, president of Maison Placements Canada, adding that the precious metal remained a safe haven amid global economic uncertainty.

"I think the overall resources will be pretty strong. Potash people are talking about a better quarter. Resources will be the strength of the market."

At 10:43 a.m. (1443 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 64.36 points, or 0.48 percent, at 13,498.43. Six of its 10 main groups were higher.

At an emergency summit on Thursday, euro zone leaders promised a second bailout for debt-stricken Greece in a broad deal that raised optimism for investors. The plan would give a financial rescue fund more powers to try to prevent the spread of market instability.

The market mood was also lifted by upbeat earnings news out of the United States. General Electric Co. reported a 21.6 percent jump in quarterly earnings, beating expectations, while McDonald's Corp's profit also topped estimates.

Not all TSX stocks fared well.

Thomson Reuters, which announced on Thursday that a key executive was leaving and had its price target cut by National Bank of Canada on Friday was a top decliner, skidding 2.4 percent to C$33.77.

Research In Motion retreated 1.56 percent to C$25.95 as a research note reported that the BlackBerry maker may pare back its pre-Christmas holiday volumes by 10 percent or more and that no European or US telecom company was seen giving it heavy holiday promotion.

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