Newspaper article The Canadian Press

Toronto Stock Market Advances by More Than 100 Points on High Commodity Prices

Newspaper article The Canadian Press

Toronto Stock Market Advances by More Than 100 Points on High Commodity Prices

Article excerpt

TSX up by 100 points amid high commodities

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TORONTO - The Toronto stock market had its highest close Wednesday in nearly a month boosted by commodity prices reaching levels not seen since early April.

The S&P/TSX composite index moved up 120.94 points to 12,585.05.

The Canadian dollar was up 0.11 of a cent at 99.67 cents US.

Stronger equity markets in Canada are a sign of heightened investor appetite for risk and optimism that the U.S. economy is gaining momentum in its recovery.

"It seems to be, that at least, the path of resistance is up, especially in the U.S.," said Ian Nakamoto, a portfolio manager with investment firm MacDougall, MacDougall and MacTier.

"It's hard to see what's going to derail this upwards trend. I don't think the rate of capitalization is going to be as strong as we had in the last couple of months, but people just want to put money into the market."

Nakamoto said the confidence in stocks has been fuelled partly by a lack of other choices.

"Interest rates are so low ... real estate is cooling. This is really the only game in town, the equities market," he said.

The gold sector was the leading advancer on the TSX and soared 5.81 per cent as June bullion made up for the $19.20 it lost on Tuesday, by surging ahead $24.90 to US$1,473.70 an ounce. Shares in Barrick Gold (TSX:ABX) were up $1.70 or 8.59 per cent to $21.50.

Kinross Gold (TSX:K) shares closed up 33 cents, or 6.25 per cent at $5.61. The company reported after markets closed Tuesday that profits were up by 50 per cent in the first-quarter to US$160.5 million. Kinross

July copper gained seven cents at US$3.37 a pound following strong import and export data from China suggesting it's recovering from an unexpected slowing in the first quarter. The metals and mining sector was up 3.93 per cent with an increase of 3.93 per cent.

The June crude contract on the New York Mercantile Exchange closed at a five-week high, up $1 at US$96.96 a barrel as the energy sector jumped by 4. …

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