TSX jumpS on ChineSe daTa, STrong profiTS
• The Toronto stock market closed sharply higher Friday, rising to its highest level in more than two years following strong economic data from China and solid earnings reports from General Electric Co., Morgan Stanley and Google Inc.
The S&P/TSX composite i ndex ran ahead 99.73 points to 13,136.09 after closing above 13,000 on Thursday for the first time since late July 2011. The increase came amid relief that U.S. lawmakers had reached an agreement to extend the debt limit, thus averting a possible default.
“Things are aligning for Canada,” said Wes Mills, chief investment officer at Scotia Asset Management PM Advisor Services.
“Canada has lagged for a couple of years now on the U.S. in particular. Technically, the TSX has broken out [and] we should be able to challenge the 14,000 level.”
The Canadian dollar was off US0.01¢ to US97.14¢ as inflation pressures increased slightly in September. Statistics Canada said the consumer price index rose by 0.2% month-over-month in September. That was on top of a 0.1% rise in August.
The agency says the CPI was up 1.1% in the 12 months leading up to September, which matched the annual rate in August.
U.S. indexes were higher as the Dow Jones industrial average erased early losses to advance 28 points to 15,399.65, while Nasdaq rose 51.13 points to 3,914.28 as Google’s stock price cracked the US$1,000 level. The S&P 500 index was ahead 11.35 points at a record high of 1,744.5.
There was positive news from the world’s second-biggest economy as China’s growth rebounded in the latest quarter to 7.8% from a two-decade low of 7.5% in the second quarter, helped by government stimulus measures.
The base metals group led advancers, up 1.7%. Copper prices had earlier advanced in the wake of the data from China, the world’s biggest consumer of the metal, but the December contract on the New York Mercantile Exchange closed unchanged at US$3.30 a pound. First Quantum Minerals Ltd. climbed 34¢ to $18.99.
The industrials sector rose 1.3%. The aerospace division of Bombardier Inc. says one of China’s top leasing companies is the previously unidentified customer for up to 30 of its new CSeries aircraft.
The buyer, CDB Leasing Co. Ltd., known as CLC, placed a conditional order in July 2012. Based on list prices, the initial contract would be worth about US$1.02-billion, and at US$2.07-billion if all options were exercised and Bombardier shares gained 9¢ to $5.08. The energy sector rose 0.8% as the Chinese data helped push the November contract US14¢ higher at US$100.81 a barrel. The gold sector was the sole decliner,
down about 0.85% after charging ahead almost 5% Thursday as December bullion lost US$8.40 to US$1,314.60 an ounce after running ahead more than US$40 on Thursday.
Google posted earnings after the close Thursday of nearly US$3-billion, or US$8.75 a share, for the three months ended in September. Ex-items, GE earned US40¢ per share, 5¢ higher than forecast and its shares rose US87¢ to US$25.55. Morgan Stanley earned US$1.01-billion, or US50¢ a share.