Toronto stocks remained higher in afternoon trading on Monday with many traders still away from their desks. Strength in the mining and gold sectors outweighed a drop for energy stocks.
The S&P/TSX Composite Index has added 73.64 points or 0.80% to 9,260.76. Toronto's main index is on pace for its highest finish since Jan. 6.
Mining stocks are up 5.9% to lead the gainers again. Among the big names, Teck Cominco (TCK.B.TO) has jumped 8.7%, Thompson Creek (TCM.TO) is up 6% and Hudbay (HBM.TO) has gained 5.1%.
The Materials Index has added 2.3% and gold stocks are up 2%. Eldorado (ELD.TO) has gained 4.5%, Iamgold (IMG.TO) has rallied 3.7% and Yamana (YRI.TO) has gained 2.3%.
On the downside, energy stocks have lost 1.8% with crude oil fallong again on the NYMEX. Baytex (BTE.UN.TO) is down 1.9% and Suncor (SU.TO) is down 0.7%. Light sweet crude for May delivery fell to $50.21, down $2.03 for the session.
In corporate news, UTS Energy Corp. (UTS.TO) gave back early gains and is up a modest 0.5% in afternoon trading as many traders bet the latest takeover bid from Total SA will be rejected. The stock had surged early after Total announced it raised its offer to buy UTS to C$1.75 cash per share, up from C$1.30. The deadline has been extended to 8 p.m. April 27.
Tanzanian Royalty Exploration (TNX.TO) shares are down 14%. The company responded to a recent article in Barron's online website, said that the article shows miunderstanding of the company's business model and provided a less than favorable picture.
Barron's article on Saturday read that Tanzanian Royalty has no revenue, no earnings and no proven gold, as well as some accounting issues. So why do its shares trade at a premium to peers that seem to be in much better shape?
Paramount Energy Trust (PMT-UN.TO) has dropped 0.5% after the company said it has agreed to purchase 9.22 million special warrants at a price of C$0.75 per special warrant for total subscription proceeds of approximately C$6.9 million.
On Thursday, the S&P/TSX Composite Index jumped 217.84 points or 2.43% to 9,187.12. Markets were closed in observance of Good Friday.
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