BROAD SECTOR GAINS PUSH TSX HIGHER
The Toronto stock market closed the session higher on Thursday as energy stocks led a broad climb that widely ignored pessimism about the economy.
The S&P/TSX composite index was up 77.09 points at 11,858.13, in a session rife with earnings reports from Canadian companies. The TSX Venture Exchange climbed 7.37 points to 1,193.05.
The Canadian dollar was at US$1.0081, up US0.26¢.
Statistics Canada reported that the country’s trade performance with the rest of the world worsened for the third consecutive month in June.
The trade deficit nearly doubled to $1.8 billion during the month, from an upwardly revised $954 million in May.
The TSX energy sector was the top gainer, up 1.8%. Canadian Natural Re
sources shares gained 6%, or $1.82, to $31.39, after the major energy producer announced it was cutting 2012 spending some $680 million or about 10%.
The September crude contract on the New York Mercantile Exchange moved a penny higher to US$93.36 a barrel.
“We seem to be rallying, albeit slowly, on the backs of possible central banks easing or stimulus,” said Allan Small, senior adviser at DWM Securities.
“I think that’s why the markets seem to be (moving) up. The volume is pretty low for a regular summer.”
On Wall Street, markets barely budged. The relative quiet is partly due to a lack of major developments in the European debt crisis or decisive news on the U.S. economy. Another reason is simply because traders like to clear out for vacation in August.
The Dow Jones industrial average dipped 10.45 points to 13,165.19 and the broader S&P increased 0.58 points to 1,402.80. The Nasdaq gained 7.39 points to 3,018.64.
The U.S. Labor Department said applications for unemployment benefits fell by 6,000 last week to a seasonally adjusted 361,000, a level consistent with modest gains in hiring. The less volatile four-week average rose by 2,250 to 368,250 in the week ended Aug. 4.
September copper moved up 3.5¢ to US$3.43 a pound while December gold increased $4.20 at US$1,617.10 an ounce.
In the retail sector, supermarket operator Metro Inc. says profits were $144.4 million in its fiscal third quarter, above analyst estimates. Revenue for the quarter was up 3.8% to $3.7 billion. Shares were up $1.61 to $58.13.
Tim Hortons Inc. posted a 13.1% increase in earnings to $108.1 million or 69 cents per share, up from $95.5 million or 58 cents per share in the same year-earlier period. Revenue rose 11.8% to $785.6 million. Its shares dropped $1.44 to $50.84.