By Solarina Ho
Reuters
Wednesday, November 2, 2005
TORONTO (Reuters) - Toronto stocks finished almost 200 points higher on Wednesday, propelled by strong quarterly results from energy companies.
Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says, "I think investors are looking at earnings and saying, maybe it's not such a scary world of investing out there as they maybe would've thought. The market's holding up quite well.”
The Toronto Stock Exchange's S&P/TSX composite index finished up 194.90 points, or 1.88 percent, at 10,585.65. Volume was a healthy 260 million shares worth C$4.9 billion.
"I think investors are looking at earnings and saying, maybe it's not such a scary world of investing out there as they maybe would've thought. The market's holding up quite well," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc.
"This quarter, on balance, I think we have some pretty good earnings. I know a lot of people out there are worried about the earnings, but I don't think I really am. Yes, you're going to get some surprises, as you always do."
All but one of the TSX's ten main groups advanced, led by a 4.72 percent jump in energy issues, despite oil prices that touched 3-month lows.
"Energy is probably going to lead the parade. Whether it stays at the lead in terms of actual performance that's another question," said Mastracci.
U.S. crude prices settled down 10 cents at $59.75 in New York as supplies rose and warm weather eased demand for winter heating fuel.
Canadian Natural Resources Ltd. rose C$5.00, or 10.13 percent, to C$54.35 and contributed more than 28 points to the overall TSX index's rise.
The stock was powered by strong operating results and the announcement of an oil sands development plan worth at least C$20 billion.
Talisman Energy rose C$2.05, or 3.87 percent, to C$55.05 after its third-quarter profit more than tripled on soaring commodity prices and higher production.
Petro-Canada rose C$2.70, or 6.60 percent, to C$43.61.
Health-care issues followed with a 3.07 percent gain, as drug maker Biovail Corp. climbed C$1.53, or 5.86 percent, to C$27.63.
The materials group was up 2.5 percent, boosted by a 2.99 percent rise by the gold mining subgroup.
Barrick Gold Corp., which made headlines this week with its $9.2 billion unsolicited takeover offer for Placer Dome Inc., was up 53 Canadian cents, or 1.81 percent, at C$29.85. Placer Dome was up 56 Canadian cents, or 2.47 percent, at C$23.27.
Tech stocks advanced 2.4 percent, as Nortel networks rose 15 Canadian cents, or 3.99 percent, to C$3.91 after it reported surging sales, a smaller third-quarter loss and hiked its 2005 sales forecast.
Telecoms were alone in the red, slipping 0.08 percent.
Overall market momentum was broadly positive, with 823 advancing issues and 597 decliners.
The blue chip S&P/TSX 60 index rose 11.45 points, or 1.95 percent, to 597.13.
U.S. stocks rose to one-month highs helped by stronger than expected earnings from media giant Time Warner Inc., and bargain-hunting among technology shares.
The Dow Jones industrial average finished up 65.96 points, or 0.63 percent, at 10,472.73, while the Nasdaq composite index gained 30.26 points, or 1.43 percent, to 2,144.31.
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