Bay Street Stocks Rise With Gold And Oil - Canadian Commantary

(RTTNews) - Canadian stocks surged on Tuesday as gold and oil prices soared on the New York Mercantile Exchange. The S&P/TSX Composite Index climbed 389.21, up 4% to 10,110.47. Toronto’s main index is on target to close above 10,000 for the first time since Oct. 20

Metal-related stocks led the charge higher as December gold moved to $757.50 an ounce, up $30.50 on the Comex. The Mining Index surged 10%, while gold stocks jumped 9.4% and materials stocks added 9%. Teck Cominco (TCK.B.TO) surged 13%, while Inmet Mining (IMN.TO) added 12.6% and First Quantum (FM.TO) gained 4%.

Royal Gold (RGL.TO) climbed 2.7% after the precious metals royalty company reported an increase in earnings for the first quarter on higher royalty revenue. Net income for the first quarter increased to $5.8 million from $5.5 million in the corresponding period last year.

The Energy Index was up 5.5% in the mid-morning as crude oil moved above $70 a barrel. Light sweet crude for December traded at $70.49, up $6.58 late in the session.

Talisman Energy (TLM.TO) rallied 8% after reporting third-quarter earnings of C$1.43 billion or C$1.40 a share, up from C$352 million, or $0.35 cents a share, a year earlier.

Elsewhere on the earnings front, Magna International (MG.A.TO) traded 6.4% lower as the company reported a third-quarter net loss of US$215 million or $1.93 after reporting a profit of $155 million or $1.38 per share a year ago. Excluding items, the company reported EPS of $0.17, well-off the $0.90 expected by analysts.

On the upside, Gabriel Resources Ltd. (GBU.TO) soared 20% after it posted a loss of C$2.8 million or C$0.01 per share in the third-quarter, narrower than a loss of C$6.7 million or C$0.03 per share in the prior year quarter.

In other corporate news, Rockwell Diamonds (RDI.TO) fell 7.7% after the company announced that the unsolicited offer made by Pala Investments Holdings to acquire Rockwell for $0.36 per share has been withdrawn.

South of the border on Tuesday, Americans lined up to make their choice between Democrat Barack Obama and Republican John McCain for the next U.S. president.

Meanwhile, a U.S. Department of Commerce report showed that factory orders fell 2.5 percent in September following a revised 4.3 percent decrease in August. Economists had been expecting a more modest decrease of about 0.8 percent compared to the 4.0 percent decrease that had been reported for the previous month.

For comments and feedback: contact editorial@rttnews.com

Posted in Categories: Canada, Releases, Stocks, USA.

If you like this article please...

Subscribe by RSS Subscribe by Email

Email This Post To A Friend