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By Frank Pingue
Reuters
Wednesday, February 23, 2005
TORONTO, Feb 23 (Reuters) - Toronto stocks finished higher on Wednesday, generating much of their power from the latest wave of stronger profits from oil companies.
Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says, "I see some pretty good earnings still, but it's not to say that I don't expect bumps and grinds along the way.”
The Toronto Stock Exchange S&P/TSX composite index rose 35.22 points, or 0.37 percent, to close at 9,675.69.
Both EnCana Corp. (ECA.TO) and Canadian Natural Resources (CNQ.TO) maintained what has been a steady flow of higher fourth-quarter profits from the energy sector.
"The buying in the TSX was definitely earnings driven as investors were focusing on the earnings from some of the energy producers like EnCana," said Elvis Picardo, chief market strategist at Global Securities Corp.
"But there definitely seems to be an area of nervousness in the market with the TSX at four-year highs, so I would not be surprised to see profit-taking come in here."
Shares of EnCana rose C$1.00, or 1.3 percent, to C$80.25, while Canadian Natural Resources rose 20 Canadian cents, or 0.3 percent, to C$68.81.
The materials group, which houses gold-mining stocks, rose 0.79 percent to lead all sectors. New York gold closed at a 2005 high of $436.10 an ounce for April delivery,
Energy issues put together a 0.5 percent gain. Five of the 10 main TSX subindexes finished higher.
Nortel Networks Corp. (NT.TO) also helped the market higher as the company secured contract wins that showcased the telecom equipment supplier's sales to cable companies.
Shares of Nortel finished ahead 10 Canadian cents, or 2.8 percent, at C$3.65, while Celestica Inc. (CLSsv.TO) closed ahead 20 Canadian cents, or 1.2 percent, at C$16.50.
The Toronto market started 2005 with a retreat but has since marched to its highest level in more than four years, leaving some experts to wonder if it will be able to maintain its momentum after the current earnings season ends.
"I see some pretty good earnings still, but it's not to say that I don't expect bumps and grinds along the way," said Adrian Mastracci, president at KCM Wealth Management Inc.
"Until the next wave of earnings really starts coming out, I think we're going to be in a bit of a wait-and see mode."
Market momentum was positive as 731 issues advanced and 658 declined on a heavy volume of 278 million shares valued at C$3.9 billion.
The blue-chip S&P/TSX 60 index rose 2.79 points, or 0.53 percent, to 533.69.
U.S. markets also closed higher as tame January consumer price data eased worries about inflation, while minutes from the last Federal Reserve Open Market Committee revealed nothing to unnerve investors.
The Dow Jones industrial average rose 62.59 points, or 0.59 percent, to 10,673.79, while the Nasdaq composite index finished 0.93 points, or 0.05 percent, higher at 2,031.25.
($1=$1.24 Canadian)
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