By Solarina Ho
TORONTO, Dec 21 (Reuters) - Toronto's main stock index surged to a one-week high on Tuesday, finishing up more than 1 percent as Toronto-Dominion Bank's $6.3 billion purchase of Chrysler Financial helped spur a broad rally.
Weighty financial stocks climbed 1.59 percent, led by TD Bank, which rose 3.74 percent to C$73.16. Royal Bank of Canada climbed 2.05 percent to C$51.82. Bank of Montreal , which fell in the last three sessions following its acquisition of Wisconsin lender Marshall & Ilsley, was up 2.08 percent at C$57.78.
'Canadian banks continue to show their confidence in recovery in the U.S.,' said Fred Ketchen, director of equity trading at ScotiaMcLeod.
'So the trend continues. I think more and more as this happens, more Americans are watching and saying, 'What we've heard with Canadian banks being in much better shape than U.S. banks -- obviously it looks like it must be true'.'
TD Bank's cash deal will make Canada's No. 2 bank one of North America's biggest bank-owned auto lenders. TD won't issue any stock to fund its purchase of Chrysler Financial from Cerberus Capital Management, a feature that helped push its shares up.
The Toronto Stock Exchange's S&P/TSX composite index closed up 171.87 points, or 1.3 percent, at C$13,365.15.
Nine of the index's 10 main groups were in positive territory. The energy group rallied 1.99 percent, while materials issues gained 0.94 percent. Telecom stocks were the lone decliners, slipping a modest 0.07 percent.
Firmer oil prices, helped by surging gasoline futures, helped buoy Suncor Energy, up 2.4 percent at C$37.52, and Imperial Oil, up 3.87 percent at C$40.30.
Cold weather and rising expectations of growing demand from drivers helped give gasoline support.
The materials group was bolstered by fertilizer makers Potash Corp, which climbed 2.67 percent, and Agrium Inc, which jumped 3.22 percent to C$85.67.
'They sold off over the last little while, but people are still realizing that you need this stuff. There continues to be growing demand for fertilizer and the world's population continues to increase,' Ketchen said.
Some of the big gold miners were left out of the advance. Barrick Gold was down slightly, off 0.06 percent at C$52.65, while Agnico Eagle slipped 0.22 percent to C$77.87.
Gold prices traded in a narrow range in holiday-thinned conditions, firming late in the session.
'I think gold is probably still the investment of choice,' said Aaron Fennell, a senior market strategist at Lind-Waldock. 'Probably we'll see more exciting things in the gold market in 2011.'
($1=$1.02 Canadian)
(Reporting by Solarina Ho; editing by Peter Galloway) ============================================================== FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS: TSX market report........................................ Canadian dollar and bonds report................... Top News: Canada .................................... Today in Canada..................................... Canada earnings schedule............................. Canadian company news ................................ Reuters global stocks poll (Canada)................ FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS: Canadian Equities speed guide...................... S&P/TSX Composite index ............................. S&P/TSE Venture composite index ..................... TSX most active....................................... Venture Exchange most active........................... Top TSX pct gainers................................... Top TSX pct losers.................................... S&P/TSX 60 index ..................................... 52 week highs: TSX............... Venture.............. 52 week lows: TSX............... Venture.............. Canadian dollar quote..................... FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS: FTSE EUROTOP 300 ..... EUROPEAN REPORT ....... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices..................................... Global markets report............................ Foreign exchange...................................... Oil.................................................... US Treasuries.......................................... International bonds................................... Gold....................................... or CRB index of commodity futures........................ Keywords: MARKETS CANADA/STOCKS (solarina.ho@thomsonreuters.com;+1 416 941 8067; Reuters Messaging: solarina.ho.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
TORONTO, Dec 21 (Reuters) - Toronto's main stock index surged to a one-week high on Tuesday, finishing up more than 1 percent as Toronto-Dominion Bank's $6.3 billion purchase of Chrysler Financial helped spur a broad rally.
Weighty financial stocks climbed 1.59 percent, led by TD Bank, which rose 3.74 percent to C$73.16. Royal Bank of Canada climbed 2.05 percent to C$51.82. Bank of Montreal , which fell in the last three sessions following its acquisition of Wisconsin lender Marshall & Ilsley, was up 2.08 percent at C$57.78.
'Canadian banks continue to show their confidence in recovery in the U.S.,' said Fred Ketchen, director of equity trading at ScotiaMcLeod.
'So the trend continues. I think more and more as this happens, more Americans are watching and saying, 'What we've heard with Canadian banks being in much better shape than U.S. banks -- obviously it looks like it must be true'.'
TD Bank's cash deal will make Canada's No. 2 bank one of North America's biggest bank-owned auto lenders. TD won't issue any stock to fund its purchase of Chrysler Financial from Cerberus Capital Management, a feature that helped push its shares up.
The Toronto Stock Exchange's S&P/TSX composite index closed up 171.87 points, or 1.3 percent, at C$13,365.15.
Nine of the index's 10 main groups were in positive territory. The energy group rallied 1.99 percent, while materials issues gained 0.94 percent. Telecom stocks were the lone decliners, slipping a modest 0.07 percent.
Firmer oil prices, helped by surging gasoline futures, helped buoy Suncor Energy, up 2.4 percent at C$37.52, and Imperial Oil, up 3.87 percent at C$40.30.
Cold weather and rising expectations of growing demand from drivers helped give gasoline support.
The materials group was bolstered by fertilizer makers Potash Corp, which climbed 2.67 percent, and Agrium Inc, which jumped 3.22 percent to C$85.67.
'They sold off over the last little while, but people are still realizing that you need this stuff. There continues to be growing demand for fertilizer and the world's population continues to increase,' Ketchen said.
Some of the big gold miners were left out of the advance. Barrick Gold was down slightly, off 0.06 percent at C$52.65, while Agnico Eagle slipped 0.22 percent to C$77.87.
Gold prices traded in a narrow range in holiday-thinned conditions, firming late in the session.
'I think gold is probably still the investment of choice,' said Aaron Fennell, a senior market strategist at Lind-Waldock. 'Probably we'll see more exciting things in the gold market in 2011.'
($1=$1.02 Canadian)
(Reporting by Solarina Ho; editing by Peter Galloway) ============================================================== FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS: TSX market report........................................ Canadian dollar and bonds report................... Top News: Canada .................................... Today in Canada..................................... Canada earnings schedule............................. Canadian company news ................................ Reuters global stocks poll (Canada)................ FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS: Canadian Equities speed guide...................... S&P/TSX Composite index ............................. S&P/TSE Venture composite index ..................... TSX most active....................................... Venture Exchange most active........................... Top TSX pct gainers................................... Top TSX pct losers.................................... S&P/TSX 60 index ..................................... 52 week highs: TSX............... Venture.............. 52 week lows: TSX............... Venture.............. Canadian dollar quote..................... FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS: FTSE EUROTOP 300 ..... EUROPEAN REPORT ....... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices..................................... Global markets report............................ Foreign exchange...................................... Oil.................................................... US Treasuries.......................................... International bonds................................... Gold....................................... or CRB index of commodity futures........................ Keywords: MARKETS CANADA/STOCKS (solarina.ho@thomsonreuters.com;+1 416 941 8067; Reuters Messaging: solarina.ho.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.