RTTNews - Toronto stocks rallied to their best level in more than eight months on Thursday, led by further strength in the mining sector.
The S&P/TSX Composite Index gained 116.13 points or 1.09% to settle at 10,714.11. This marks the best finish since October 3.
Mining stocks added 4.2% as copper gained on the Comex. First Quantum (FM.TO) fell 5.4%, HudBay (HBM.TO) dropped 3.9% and Teck Cominco (TCK.B.TO) lost 2.7%.
Technology stocks gained 2.2%, led by a 2% jump by Research in Motion (RIM.TO). The Blackberry maker had its first quarter and full year estimates increased by JPMorgan Chase & Co. RIM is now expected to earn $0.96 per share in the quarter, up from $0.88. RIM is scheduled to report earnings on June 18.
Energy stocks added 1.9% as crude oil closed at $72.68 per barrel, up $1.35 for the day. Canadian Oil Sands (COS.UN.TO) jumped 3.1%, Canadian Natural Resources (CNQ.TO) added 2.3% and Suncor (SU.TO) and Encana (ECA.TO) rose 1.15%.
In other corporate news, Telus Corp. (T.TO) climbed 1% after the telecommunications carrier said it plans to invest more than C$250 million this year in the Quebec province, for advancing its broadband infrastructure. The investment is also expected to support more than 750 jobs.
Xceed Mortgage Corp. (XMC.TO) dropped 7.1% as the company reported second quarter net income of C$46,000 or breakeven per share, compared to a loss of C$16.67 million or C$0.60 per share in the same quarter of last year. Revenues for the quarter were C$3.76 million, compared to C$4.82 million in the prior year quarter.
lululemon athletica (LLL.TO) plunged 13.4% after the apparel maker reported first-quarter net income of $6.52 million or $0.09 per share, compared to $8.48 million or $0.12 per share last year.
Transat A.T. (TRZ-A.TO) increased 3.3% after the company reported second-quarter net income of C$42.19 million or C$1.27 per share, compared to C$41.72 million or C$1.25 per share last year.
Agrium (AGU.TO) rose 2.6% after the stock was initiated at Buy at a target price of $62.00 by Sterne Agee. Rival Potash (POT.TO) added 0.3% after it was initiated at Buy with a target price of $150.00 by the same firm.
Meanwhile, Bank of Canada governor Mark Carney reiterated that he expects interest rates to remain at the current 0.25% until the second quarter of next year. He also called for new rules to help end the global credit crisis.
Statistics Canada reported industries operated at 69.3% of production capacity, down 5.6 percentage points from the previous quarter.
According to the Globe and Mail, the Ottawa government is planning on providing $1 billion in aide to the forest industry designed. The relief package is designed to help pulp producers combat subsidies from Washington to U.S. rivals, the newspaper said.
Across the border, the U.S. Labor Department revealed that initial jobless claims came in at 601,000 for the week ended at June 6. And a Commerce Department report showed that retail sales rose 0.5 percent in May following a revised 0.2 percent decrease in April.
On Friday, Patheon (PTI.TO) is expected to report second quarter results on Friday before the opening bell. The company reported a loss of US $0.93 per share a year ago.
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