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By Franco Pingue
Reuters
Friday, January 2, 2004
TORONTO, Jan 2, (Reuters) - Toronto stocks were up strongly at midday on Friday in a quiet session, lifted to 2-1/2 year highs by a report showing a strong U.S. manufacturing sector.
Adrian Mastracci, investment counsel and president of Vancouver based ‘fee-only’ KCM Wealth Management, says, “The market looks ahead so it's definitely expecting some good things in this coming year.”
The Toronto Stock Exchange S&P/TSX composite index (.GSPTSE) was up 105.71 points, or 1.29 percent, at 8,326.31.
The U.S. Institute for Supply Management's monthly manufacturing index blew past expectations, jumping to 66.2 in December, up from November's 62.8, which was a previous 20-year high. A strengthening U.S. manufacturing sector would drive up demand for Canadian exports and help Canadian firms.
But with many market players slow to return from holidays, market volumes were sluggish, and analysts said that exaggerated what would otherwise be more modest movements.
"The market looks ahead so it's definitely expecting some good things in this coming year," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc.
"But I do think investors should expect some potential volatility in the next little while."
The information technology sector rose nearly 2 percent to lead all sectors, while heavily-weighted financial issues rose 1 percent. All 10 of the TSX's 10 subindexes were higher.
Nortel Networks Corp. (NT.TO), the most active issue, was up 28 Canadian cents, or 5 percent, at C$5.77, while contracts electronics manufacturer Celestica Inc. (CLS.TO) rose 54 Canadian cents, or 2.7 percent, to C$20.10.
Market momentum was positive as 520 issues advanced and 406 declined on a wafer thin volume of 62 million shares valued at C$755,000.
($1=$1.29 Canadian)
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