CANADA STOCKS-TSX buoyed by Goldman earnings, commodities

*TSX up 0.27 percent to 12,136.07

*Energy, materials lead index higher

By Claire Sibonney

TORONTO, April 20 (BestGrowthStock) – Toronto’s main stock index
was higher on Tuesday morning as a slew of strong U.S. company
results boosted market risk appetite and commodity prices
gained.

The index’s energy sector was up 0.9 percent as oil rose
past $82 a barrel after Goldman Sachs (GS.N: ) reported
stunningly strong earnings and as some European flights resumed
after the threat from volcanic ash in Iceland receded.

The grounding of flights due to the ash cloud had pushed
down oil prices as had uncertainty surrounding the Goldman
charges. [O/R] [ID:nN20251740]

Shares of Suncor Energy Inc (SU.TO: ), Canada’s largest oil
company, jumped 1.3 percent to C$34.49, while Niko Resources
(NKO.TO: ) gained 1.2 percent to C$114.62.

“We were due for some type of pullback and I certainly
thought that the combination for the Goldman potential fine and
air traffic brought to a halt in Europe would be the catalyst
but it’s not the case,” said Barry Schwartz, vice-president and
portfolio manager at Baskin Financial Services.

“This just tells us this market still has legs. It’s just
shrugging off any bad news and it’s focusing on really good
earnings and improving economic data.”

Schwartz added there was little reaction to the Bank of
Canada becoming the first Group of Seven country to signal it
will raise interest rates, perhaps as early as June 1, as the
economy recovers faster than expected. [ID:nN20257669]

“This is priced in…this is the bottom of the cycle and
our generation will never see low interest rates like this
again.”

At 10:20 a.m. (1420 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was up 33.10 points, or 0.27
percent, at 12,136.07. Seven of its 10 sectors were higher.

Its materials group was 0.2 percent higher as base metal
prices benefited from the renewed investor optimism. [MET/L]

Teck Resources (TCKb.TO: ), the country’s biggest base-metals
miner, gained 1.6 percent to C$43.08, while First Quantum
Minerals (FM.TO: ) rallied 3.1 percent to C$82.46.

Gold producers, however, lagged the price of the metal as
investors saw waning momentum to take shares higher.

Barrick Gold Corp (ABX.TO: ), the world’s biggest gold
producer, lost about 1 percent to C$39.36, while Goldcorp Inc
(G.TO: ) dropped 0.6 percent to C$39.22.

“A good economy usually means bad news for gold. Gold
should be insurance against calamity and we’ve turned the
corner there so it’s hard to see the catalyst take gold
higher,” Schwartz said.

“I guess as a hedge against U.S. dollar weakness it should
do okay but we prefer to put our clients into things that have
more upside.”

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($1=$1.00 Canadian)
(Reporting by Claire Sibonney, editing by Peter Galloway)

CANADA STOCKS-TSX buoyed by Goldman earnings, commodities