Strong gdp helpS lift tSx and loonie

The latest sign that Canada’s economy is doing better than expected and a strong rally from energy stocks helped push the Toronto stock market higher Monday as it entered into one of the quietest trading weeks of the year.

The S&P/TSX composite index rose 48.10 points to 13,447.70, while the loonie jumped 0.33 of a cent to US94.24¢.

Statistics Canada reported that the economy grew by 0.3% in October, higher than consensus estimates of 0.2% and on par with September’s increase. The latest reading marked the fourth consecutive month of growth for the country’s gross domestic product.

The figures were a welcome sign in what is expected be a muted week for the TSX as it heads into 2013’s second last week of trading. The Toronto exchange is scheduled to close early Christmas Eve, and will be shut down on Christmas Day and Boxing Day. New York is shuttered just for Dec. 25.

U.S. indexes were positive as the Dow Jones industrials surged 73.47 points to close at a record-high of 16,294.61. The Nasdaq jumped 44.16 points to 4148.90 and the S&P 500 index gained 9.67 points to 1827.99. The Dow was supported by tech giant Apple Inc., which announced that it is teaming up with China Mobile. Apple said China’s largest carrier will begin selling the iPhone 5S and 5C models beginning next month.

The iPhone already is available in China through two smaller carriers, but this latest agreement links it with a bigger net- work and state-owned China Mobile Ltd.’s marketing power. Shares in Apple closed up US$21.07 to US$570.09.

Fred Ketchen, ScotiaMcLeod’s director of equity trading, said the lift in North American markets may indicate that investors are finding comfort in the upbeat economic news.

“The economic standpoint is not upsetting. It’s not roariously healthy, but there is a certain calmness to it,” said Mr. Ketchen.

“I just think there’s a fair amount of comfort of where we are economically, where we are politically and where we are when it comes to the markets. I don’t expect any disasters.”

In corporate news, Toronto-based Pacific Rubiales Energy Corp. says it is selling its 5% stake and transportation rights in a Colombian oil pipeline to a consortium led by a private-equity unit of Franklin Templeton for US$385-million in cash.

Pacific Rubiales acquired its stake in the OCENSA pipeline when it bought Petrominerales Ltd. in a US$1.6-billion deal that was announced in September. Proceeds from the sale will be applied to the Petrominerales transaction and reduce the cost for Pacific Rubiales to about $1.2-billion. Its shares closed up 2¢, or 0.11%, to $18.76 on the TSX.

Meanwhile, shares in Reitmans (Canada) Ltd. closed nearly 9% higher after Fairfax Financial Holdings Ltd. disclosed that it has increased its stake in the struggling retailer.

Fairfax said late Friday that it has raised its stake in the Montreal-based company to 13.8%. Reitmans’ shares were up 57¢ at $6.92.