RTTNews - Bay Street stocks continued to rally on Monday, led by strength from resource stocks. Investors also considered a better-than-expected gross domestic product report.
The S&P/TSX Composite Index has rallied another 195.33 points or 1.88% to 10,565.40. The index is on pace to again extend its highest level since October 3.
Mining stocks have soared 5.8% to lead the way as copper has jumped 9.3 cents to $2.2905 on the Comex. Teck Cominco (TCK.B.TO) has rallied 7.5% and FNX Mining (FNX.TO) has added 5.5%.
Red Back Mining (RBI.TO) has dropped 7% after announcing it has reached a deal to acquire Moto Goldmines (MGL.TO) in a deal worth approximately C$513 million. Moto shares are down 1.3%.
Energy stocks have added 3.7% as crude oil has moved above $68 per barrel. Canadian Natural Resources (CNQ.TO) is up 5.2%, Canadian Oil Sands (COS.UN.TO) has added 4.4%, Encana (ECA.TO) is 3.4% higher and Suncor (SU.TO) has added 2.5%.
Financials are up 2% as investors continue to mull last week's earnings reports from the big six banks. Bank of Montreal (BMO.TO) rallied 2.2%, Scotiabank (BNS.TO) is up 2% and Royal Bank (RY.TO) has added 1.9%.
In corporate news, Magna International (MG.A.TO) is up 0.5% after the company announced that it has reached a conceptual framework to take over Opel, the German division of General Motors Corp.'s European operations.
Beleaguered automaker General Motors (GM) said that it has filed for bankruptcy under Chapter 11, as widely expected. In its filing, the company revealed that it had assets equivalent to $82.29 billion, and total debts, on a consolidated basis, of $172.81 billion, as of March 31.
According to the Globe and Mail, the federal and Ontario governments will contribute US$9.5 billion under the filing own $12% of GM.
Elsewhere on the corporate front, Goldcorp (G.TO) is down 2.7% after the company said it is planning a private offering of approximately US$750.0 million of convertible senior notes due 2014.
ESI Entertainment Systems (ESY.TO) reported a net loss of C$5.07 million or C$0.36 per share for fiscal 2009, compared to a net loss of C$7.20 million or C$0.42 per share in the year-ago.
In economic news, Canada's real gross domestic product declined 1.4% in the first quarter, the largest quarterly decrease since 1991, according to data released Monday morning by Statistics Canada.
Real GDP fell 0.3% in March. The declines in February and March were less pronounced than those in the preceding three months.
In other economic news in Canada, the Industrial Product Price Index (IPPI) and the Raw Materials Price Index were both down 0.5% in April compared with March.
On Friday, the S&P/TSX Composite Index fell 22.30 points or 0.21% to close at 10,370.07. The index had gained in three of the previous four sessions.
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