Home Economy Canadian markets up 5 percent in New Year

Canadian markets up 5 percent in New Year

By Gurmukh Singh, IANS,

Toronto : There was more cheering news from the world’s ninth largest economy Tuesday.

Continuing their positive streak for the sixth consecutive day Tuesday, Canadian markets were up two percent on rising financial and commodity stocks.

Having sunk as low as 7,724 points in November from their historical peak of 15,000 last June, the markets have already gained five percent in the New Year.

Fuelled by the 11 percent rise in the energy sector since Dec 31, market gains have revived hopes that the world’s ninth largest economy may recover sooner than later.

On the Toronto Stock Exchange (TSX), the composite index rose 186.58 points to close at 9,472.09 Tuesday.

The financial sector was up 3.45 percent, with Fairfax Financial Holdings Limited shares gaining a whopping $20.86 to close at $383.89 as the Toronto-based financial giant announced hiked dividend for its shareholders.

Other gainers included the Bank of Montreal which was up $2.13 to $34.66, and the top Royal Bank of Canada which rose 83 cents to close at $38.04.

Gainging 1.25 percent more Tuesday, the Canadian energy sector has staged a big recovery of 11 percent in the New Year on the rising crude price.

Tuesday’s gainers in the energy sector included Suncor Energy Inc. which was up $1.62 to close at $29.02. However, the energy giant EnCana Corp slipped lower $1.56 to end the day at $60.86.

The base-metals sector, which has staged a remarkable rally in the New Year gaining almost 38 percent of the 68 percent loss in 2008, was further up 10 percent, with Sherritt International gaining 46 cents to close at $4.45 and FNX Mining 79 cents to close at $4.69.

After slipping lower Monday, the gold sector was up two per cent Tuesday, with Goldcorp Inc. gaining 42 cents to close at $35.14.

Keeping up with the rising oil prices, the Canadian dollar also continued its upward march against the US dollar, gaining 0.52 cents US to close at 84.55 cents US.