By Franco Pingue
Reuters
Wednesday, June 1, 2005
TORONTO, June 1 (Reuters) - Toronto stocks were comfortably higher at midday on Wednesday as a bullish outlook from Nortel Networks Corp. (NT.TO) sparked a rally among technology shares, while high oil prices supported the energy group.
Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says, "Tech is viewed as one of the leading things that investors look at and they will get on the bandwagon and ride it for a while.”
The Toronto Stock Exchange S&P/TSX composite index rose 68.86 points, or 0.72 percent, to 9,677.35.
"Tech is viewed as one of the leading things that investors look at and they will get on the bandwagon and ride it for a while," said Adrian Mastracci, investment counsel at KCM Wealth Management Inc. "But oil price fluctuations are going to dominate the currency market and the stock markets."
The information technology sector rose a market-leading 2.4 percent, followed by a 1.5 percent gain a by energy shares. Eight of the 10 main TSX subindexes were higher.
Nortel led the tech charge as the company made encouraging comments about demand for its telecom equipment a day after releasing tardy first-quarter results that displayed a loss against a year-ago profit.
Nortel jumped 29 Canadian cents, or 9 percent, to C$3.48, while electronics maker Celestica Inc. (CLSsv.TO) was ahead 28 Canadian cents, or 1.7 percent, at C$16.10.
Energy shares enjoyed stronger oil prices, which climbed to a three-week high above $52 a barrel, led by distillate buying, as heating oil exerted an unseasonably strong pull.
Shares of EnCana Corp. (ECA.TO) rose 90 Canadian cents, or 2 percent, to C$44.40., while Canadian Natural Resources (CNQ.TO) gained 88 Canadian cents, or 2.4 percent, to C$37.13.
($1=$1.25 Canadian)
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