Toronto Stocks Rally 1.6% - Canadian Commentary

  @ibtimes on August 13 2009 11:11 AM

RTTNews - Canadian stocks surged on Thursday, following the lead of global stocks. Strong gross domestic product data in the Germany and France revived hopes the global economy may be on the road to better days.

The S&P/TSX Composite Index has surged 171.42 points or 1.6% to move at 10,831.29. The market is up for a second straight day.

Mining stocks are again leading the gainers with a 4.6% jump. Inmet (IMN.TO) has rallied 4.3%, First Quantum (FM.TO) is up 3.9% and Teck Resources (TCK.B.TO) has gained 3.8%.

Anvil Mining (AVM.TO) has rallied 5.8% after the company reported second-quarter net loss was US$11.35 million or US$0.13 per share, compared with a net income of US$8.52 million or US$0.12 per share in the prior-year quarter.

Materials stocks are up 3.2% and gold stocks have added 3.1%. Eldorado (ELD.TO) is up 8.3%, Goldcorp (G.TO) has added 2.9% and Agnico-Eagle Mines (AEM.TO) is up 2.9%.

Kinross Gold (K.TO) is up 1.7% after the company reported that its second quarter net earnings were US$19.3 million or US$0.03 per share, compared to net earnings of US$26.0 million or US$0.04 per share a year ago. Adjusted net earnings for the second quarter were US$84.3 million or US$0.12 per share, up from US$49.5 million or US$0.08 per share last year.

Energy stocks are up 2.1%. Suncor (SU.TO) is up 2.4% after the company reportedly closed units at a refinery in Edmonton for the second time in a month because of mechanical problems, adding to supply worries.

In other corporate news, Gildan Activewear (GIL.TO) has gained 9.3% after the company reported third-quarter net earnings of $41.5 million or $0.34 per share, lower than net earnings of $54.5 million or $0.45 per share reported in the same period of fiscal 2008. The previous year's results have been recast.

Stella-Jones (SJ.TO) reported its net earnings for the second quarter increased to C$11.0 million or C$0.87 per share from C$10.1 million or C$0.80 per share in the prior-year quarter. However, the stock fell 4%.

On Wednesday, the S&P/TSX Composite Index rose 30.4 points or 0.28% to close at 10,659.87. The market had finished at its lowest level of August on Tuesday.

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