Canadian stocks rise as gold producers advance, insurers fall
Tuesday, 17 November 2009
TORONTO, Nov 13 (Bloomberg): Canadian stocks rose, completing a second-straight weekly gain, as investors grew more confident in a global recovery and moved money from the US dollar to higher yielding assets, boosting gold producers.
Barrick Gold Corp, the world's largest bullion producer, rallied 1.9 per cent as the metal gained for a second week. Suncor Energy Inc gained 1.2 per cent as Bank of America increased its rating to "buy." Power Corp of Canada, a holding company with stakes in financial institutions, dropped 2.5 per cent after reporting earnings that missed analysts' estimates.
The Standard & Poor's/TSX Composite Index gained 46.92 points, or 0.4 per cent, to 11,407.68. The index added 1.4 per cent this week as G-20 finance ministers agreed to keep stimulating the economy with low interest rates and industrial production and machinery orders increased in China and Japan, respectively.
"Confidence is being rebuilt," said Ian Nakamoto, director of research at Macdougall Macdougall & Mactier Inc in Toronto, which manages about C$4 billion ($3.81 billion). "People are realizing the economy is slowly improving. Interest rates are going to stay down, and you better put your cash someplace other than getting zero return, and you've got to take some risk to do that."
The S&P/TSX has outgained the S&P 500 this year, 27 per cent to 21 per cent, as signs of economic recovery encourage investors to buy commodity-linked stocks. Energy and materials companies represent 46 per cent of Canadian stocks by market value.
Barrick Gold Corp, the world's largest bullion producer, rallied 1.9 per cent as the metal gained for a second week. Suncor Energy Inc gained 1.2 per cent as Bank of America increased its rating to "buy." Power Corp of Canada, a holding company with stakes in financial institutions, dropped 2.5 per cent after reporting earnings that missed analysts' estimates.
The Standard & Poor's/TSX Composite Index gained 46.92 points, or 0.4 per cent, to 11,407.68. The index added 1.4 per cent this week as G-20 finance ministers agreed to keep stimulating the economy with low interest rates and industrial production and machinery orders increased in China and Japan, respectively.
"Confidence is being rebuilt," said Ian Nakamoto, director of research at Macdougall Macdougall & Mactier Inc in Toronto, which manages about C$4 billion ($3.81 billion). "People are realizing the economy is slowly improving. Interest rates are going to stay down, and you better put your cash someplace other than getting zero return, and you've got to take some risk to do that."
The S&P/TSX has outgained the S&P 500 this year, 27 per cent to 21 per cent, as signs of economic recovery encourage investors to buy commodity-linked stocks. Energy and materials companies represent 46 per cent of Canadian stocks by market value.