Mining, energy stocks help push TSX higher

The Toronto stock market closed modestly higher Tuesday as energy and mining stocks ran ahead on higher prices for oil and metals. But the index was held back in part by BlackBerry as its new product started presales in the U. S.

The S& P/ TSX composite index advanced 20.09 points to 12,878.58. The Canadian dollar inched up US0.03¢ to US97.46¢.

U. S. indexes had started the day off lower as traders wondered if the recent rally that has driven indexes to multi- year highs is running out of steam.

But by the close, the Dow industrials inched up 2.77 points to another recordhigh close of 14,450.06, its eighth straight record high close. The Nasdaq index fell 10.55 points to 3,242.32 while the S& P 500 index shed 3.74 points to 1,552.48.

The mainly lacklustre performance on stock indexes reflects soft Chinese industrial production and retail sales figures that came out last weekend and raised concerns about the pace of the world’s second biggest economy.

In addition, higher- than- expected inflation of 3.2% in February raised questions about the Chinese government’s ability to do more to shore up the economy.

And on Tuesday, Britain’s Office for National Statistics released figures showing industrial production fell sharply during January, raising fears the country will suffer its third recession in not much more than four years.

Industrial production fell at a monthly rate of 1.2% in January, in contrast to expectations for a modest 0.2% rise.

However, the TSX is still up 3.8% for the year so far with some support coming from the Dow’s recent strong runup.

“I do think there is inspiration flowing across the border from the south,” said Fred Ketchen, manager of equity trading at Scotia Capital.

The Dow has surged more than 10%, so far, this year.

In Toronto, the gold sector led advancers, up about 2.35% while April bullion was ahead $ 13.70 to US$ 1,591.70 an ounce. Goldcorp Inc. rose 73¢ to $ 33.96.

Alamos Gold Inc. is asking the B. C. Securities Commission to remove a “poison pill” anti- takeover defence erected by

Aurizon Mines Ltd. The original Aurizon shareholder rights plan expired March 4 when Hecla Mining Co. came forward with a rival, friendly offer. Alamos says a second poison pill announced by Aurizon on Monday is designed to prevent shareholders from exercising their right to accept its proposal. Alamos shares gained 19¢ to $ 14.75 while Aurizon was ahead 4¢ at $ 4.55.

May copper rose 4¢ to US$ 3.55 a pound, boosting the base metals sector by 0.61%.

Teck Resources gained 29¢ to $ 31.62.