Skip to content
Join our Newsletter
Join our Newsletter

Commodities fuel gains for TSX

The Toronto stock market ended near its highs of the day on Tuesday as commodities pushed the market ahead. The S&P/TSX composite index closed up 200.91 points to 11,863.50, in a session partly characterized by playing catch up with U.S.

The Toronto stock market ended near its highs of the day on Tuesday as commodities pushed the market ahead.

The S&P/TSX composite index closed up 200.91 points to 11,863.50, in a session partly characterized by playing catch up with U.S. markets after the Civic Holiday. The TSX Venture Exchange rose 3.61 to 1,190.56.

The Canadian dollar ended the day above parity, at US$1.0025, up US0.44¢ from Friday's close.

Much of the activity was in commodities stocks, with metals and mining stocks leading the way, up 4.6%. HudBay Minerals Inc. stock was up 7.5%, or 63¢, to $9.02.

The September copper contract moved up nearly 5.2¢ to US$3.44 a pound while December gold dropped $3.20 to US$1,609.70 an ounce.

Energy stocks gained 2.9% with the September crude contract on the New York Mercantile Exchange ahead $1.47 to close at US$93.67 a barrel, closing at its highest level in two months.

On Wall Street, gains were driven by a renewed sense of optimism about the economy, with better earnings results than expected from several U.S. companies and expectations that central banks will act to support the economy.

The Dow Jones industrial average increased 51.09 points to 13,168.60 and the broader S&P was up 7.12 points to 1,401.35. Nasdaq gained 25.95 points at 3,015.86.

Of the 407 companies in S&P 500 that reported earnings through Monday, 65% beat Wall Street expectations, according to S&P Capital IQ. More than 40% have reported double-digit growth.

Meanwhile, U.S. employers posted the most job openings in four years in June, a positive sign that hiring may pick up.

Statistics Canada said the value of building permits issued in June fell 2.5% to $6.8 billion, largely due to a drop in Alberta and British Columbia. The drop follows a 7.1% increase in the previous month.

In the media spectrum, TVA Group Inc. nearly doubled its second-quarter profit. The broadcaster and publisher said net income attributable to common shareholders rose to $23.7 million or $1 per share, including $12.9 million or 54¢ per share from the sale of its 51% stake in The Cave and 50% stake in Mystery TV. Shares dropped 5¢ to $7.39.

And three major Canadian media companies have launched a campaign to oppose BCE Inc.'s planned purchase of Astral Media Inc., saying the deal would give Bell too much control over the country's broadcasting landscape.

The heads of Cogeco Cable Inc., Eastlink and Quebecor Inc. unveiled a new online petition against the proposed deal.