By Solarina Ho
Reuters
Wednesday, May 18, 2005
TORONTO, May 18 (Reuters) - Toronto stocks closed higher for a third straight session on Wednesday as a positive showing by mining, industrial and tech companies combined with easing interest-rate worries to help strengthen the market.
Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says, "I think (the market's) slower than what most people would like ... but the reality is, we're still doing reasonably well under the circumstances.”
The Toronto Stock Exchange's S&P/TSX composite index closed up 36.44 points, or 0.39 percent, at 9,407.84, but well off the day's high of 9,451.69.
"The economy's going to be stronger than what people are looking for, and therefore resources look good," said Bruce Murray, executive vice-president at McLean Budden.
"I think the outlook for the economy is positive, the outlook for interest rates is flat, and therefore the outlook for stocks is decent," Budden said.
"There's a wall of worry out there that's really substantial, so there's a lot of room to climb it."
The materials group, home to mining and other resource companies, was up 1.84 percent as gold and base-metals prices rose on some bargain hunting and a weaker greenback, which made U.S. dollar-priced commodities more appealing to investors.
The greenback softened as the U.S. government reported tame core inflation data for April, relieving worries that the Federal Reserve would start to raise interest rates more aggressively.
Steelmaker Algoma Steel Inc. (AGA.TO) gained C$1.83, or 6.59 percent, to C$29.58. Nickel miner Inco Ltd. (N.TO) rose C$1.85, or 4.09 percent, to C$47.05.
Gold miners were up 0.96 percent, with Goldcorp Inc. (G.TO) climbing 42 Canadian cents, or 2.63 percent, to C$16.37.
Industrials, which have had a lackluster month, climbed 2.01 percent, helped by stronger transportation issues, which have benefited from a relaxation of energy prices.
Canadian National Railway (CNR.TO) rose C$2.07, or 2.83 percent, to C$75.24 after it reached a tentative contract deal with its Canadian locomotive engineers late Tuesday, just ahead of a strike deadline.
WestJet Airlines Ltd. (WJA.TO), Canada's No. 2 carrier, rose C$1.05, or 7.81 percent, to C$14.50.
Techs gained 1.16 percent, supported by Research In Motion (RIM.TO), which climbed C$3.16, or 3.45 percent, to C$94.76 amid bullish comments made at a technology conference.
Energy stocks fell 0.79 percent as oil prices cooled to a 13-week low on data that showed U.S. crude stocks were at their highest level in almost six years. Oil prices fell to about $47.25 a barrel.
"I think (the market's) slower than what most people would like ... but the reality is, we're still doing reasonably well under the circumstances," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc.
Market momentum was positive, with 787 advancers and 590 decliners. Volume was 229 million shares valued at C$4 billion.
The blue-chip S&P/TSX index rose 1.30 points, or 0.25 percent, to 526.32.
U.S. blue-chip stocks climbed to a one-month high, buoyed by the inflation numbers and falling oil prices.
The Dow Jones industrial average rose 132.57 points, or 1.28 percent, to 10,464.45, while the Nasdaq composite index gained 26.50 points, or 1.32 percent, to 2030.65.
($1=$1.26 Canadian)
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