By Jennifer Kwan
TORONTO (Reuters) - Toronto's main stock index
retreated from a six-week peak but still ended higher
Tuesday as a weak U.S. dollar helped boost energy issues and
investors played catch-up with prices on other stock markets
after a holiday Monday in Canada.
The index's hefty energy sector, up 1.3 percent, led the
charge with Suncor Energy Inc up 2.4 percent at
C$34.71, and Canadian Natural Resources rallying 2.3
percent to C$36.21. The price of oil pierced a three-month high
above $82 a barrel.
The index's materials group rose 0.9 percent as gold prices
climbed, boosting such names as Barrick Gold, up 0.5
percent at C$42.46, and First Quantum Minerals, up 4.6
percent at C$67.37.
The TSX was closed on Monday, missing out as stock prices
rose in the United States and elsewhere.
"The main reason why we're doing so well really is because
we're playing catch-up to what transpired in not just the
States but world markets over the (Canadian) holiday," said
Levente Mady, market strategist at Union Securities in
U.S. stocks closed at their highest level in 10 weeks on
Monday, while global markets surged, in part as European bank
earnings boosted optimism. Analysts also said the TSX's rise on
Tuesday reflected lingering optimism about Monday's U.S. data,
which showed manufacturing growth in July was better than many
analysts had expected
On Tuesday, the Toronto Stock Exchange's S&P/TSX composite
index finished the session up 69.17 points, or 0.59
percent, at 11,782.60, with eight of its 10 main sectors
higher. Earlier, the index touched a six-week high of
Royal Bank of Canada, the country's biggest
lender, was up 0.2 percent at C$53.83, while Toronto-Dominion
Bank rose 0.6 percent to C$73.62.
Research In Motion was in the spotlight as it
unveiled a new BlackBerry smartphone with a touchscreen and
slideout keyboard, hoping to raise its consumer appeal and fend
off competition from Apple's iPhone.
Separately, there were reports the BlackBerry maker
may be considering concessions to India and Kuwait
after their governments voiced concerns that the BlackBerry
could be a security threat.
RIM shares were the top net loser on the market, and closed
4 percent lower at C$56.77.
Gold miner Kinross Gold Corp, down 6.4 percent at
C$15.79, was the most heavily traded stock on the TSX. Kinross
said it will buy the 91 percent of Red Back Mining Inc
that it does not already own for around $7 billion to create
one of the world's largest gold miners.
Red Back Mining shares, the second most heavily traded
stock on the market, rallied 5.5 percent to C$27.45.
Gold miners generally supported the TSX's move higher as
investors speculated about the potential of other mergers and
acquisitions, said Gareth Watson, Canadian Equity Advisor,
Portfolio Advisory Group, ScotiaMcLeod.
"Gold stocks are potentially reacting to that proposed
merger between Kinross and Red Back. Whenever you see that type
of M&A activity, that sometimes sparks speculation about who
else may be on the M&A block next," Watson said.
The blue chip S&P/TSX 60 index closed 3.50 points,
or 0.51 percent, higher at 688.53.
(Reporting by Jennifer Kwan; editing by Peter Galloway)