RTTNews - Toronto stocks have moved back into positive territory on Thursday as commodities bounced back from yesterday's slump to push resource stocks higher. Investors also considered the Bank of Canada's decision to leave its key interest rate at a record-low 0.25% on Thursday, as expected.
The S&P/TSX Composite Index has risen 196.58 points or 1.91% to move at 10,486.70. The market finished yesterday at a weekly low.
Mining stocks are showing a 5% gain as copper turned notably higher on the Comex. HudBay (HBM.TO) has jumped 7.2%, Teck Cominco (TCK.B.TO) has surged 7%, Inmet (IMN.TO) has added 6.2% and First-Quantum (FM.TO) is up 2.7%.
Energy stocks have gained 3% as crude oil has gained $2.67 to $68.79 per barrel on the NYMEX. Petro-Canada (PCA.TO) shares are up 5.3% after the company's stockholders approved a $19 billion merger deal with Suncor (SU.TO). Shareholders of Suncor, which is up 5.5%, are also expected to vote today.
Other stocks on the rise include Canadian Oil Sands (COS.UN.TO), which has added 3.1% and Canadian Natural Resources (CNQ.TO) is up 2.7%.
Crescent Point Energy Trust has gained 3.5% after the stock was upgraded to Buy from Neutral by UBS.
Materials sticks are up 2.9% and gold stocks are up 2.4% as the precious metal also rebounded from yesterday's slide. Kinross (K.TO) has added 3.4% as Vice President James Crossland reportedly said the gold producer is interested in mergers and acquisitions in the countries where it already has operations.
In other corporate news, Harry Winston Diamond (HW.TO) is up 0.8% as its chief executive officer said diamond prices are improving. The company revealed a first-quarter net loss of US$0.68 per share, compared to net income of US$0.35 per share last year.
Domtar Corp. (UFS.TO) has surged 6.5% after it announced that it had raised the tender capital from US$250 million to US$400 million, related to its previously announced tender offer for its outstanding 7.875% notes due 2011.
CanWest Global Communications (CGS.TO) has rallied 7.3% after The Globe and Mail reported creditors of the company could bring in a chief restructuring officer.
Elsewhere on the economic front, Statistics Canada reported building permits were down 5.4% in the month of April. Non-residential permits fell 14.4%.
In the U.S., a Labor Department report showed that initial jobless claims fell to 621,000 from the previous week's revised figure of 625,000. Economists had been expecting jobless claims to edge down to 620,000 from the 623,000 originally reported for the previous week.
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