RTTNews - Toronto stocks soared again on Monday, boosted by higher copper and crude oil prices. Investors also mulled over a better-than-expected gross domestic product report from Canada.
The S&P/TSX Composite Index surged 233.99 points or 2.25% to finish at 10,604.06. Toronto's main index followed major world markets higher and added to its highest close in nearly eight months.
Mining stocks rose almost 7%, following the sharp gains of copper on the Comex. Teck Cominco (TCK.B.TO) rose 8.75%, Inmet (IMN.TO) added 7.2%, First Quantum (FM.TO) climbed 5.2% and Hud Bay edged up 1.5%.
Moto Goldmines (MGL.TO) rose 3.2% after announcing it has agreed to be acquired by Red Back Mining (RBI.TO) in a stock deal worth approximately C$513 million. Red Back shares fell 6.2%.
Energy stocks rallied 4.6% as crude oil extended a multi-month high. Canadian Oil Sands (COS.UN.TO) gained 5.7%, Canadian Natural Resources (CNQ.TO) rose 5.3%, Encana (ECA.TO) added 4.75% and Suncor (SU.TO) climbed 4.6%.
Industrials gained 4.1%, boosted by some strong economic data. Bombardier (BBD.B.TO) added nearly 8% ahead of its quarterly earnings report on Wednesday.
Tech stocks finished with a 4% gain as Research in Motion (RIM.TO) added 4.6%.
Financials are up 2.25% with the big six banks all in the green. Bank of Nova Scotia (BNS.TO) added 2.75%, Bank of Montreal (BMO.TO) rose 2.6% and Royal Bank (RY.TO) gained 2.2%. All of the big six banks reported earnings last week.
Manulife Financial (MFC.TO) rose 3.2% after the company appointed Scott Hartz as executive vice president of general account investments. In this role Hartz oversees all U.S., Canadian and Asian general account investments, with total assets exceeding C$166 billion.
In the top corporate news of the day, 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 reports, the federal and Ontario governments will contribute US$9.5 billion under the filing own $12% of GM. Prime Minister Stephen Harper said GM is not expected to repay most of the loan.
However, a government official told reporters the governments to sell off their shares with eight years of an initial public offering planned for next year.
Magna International (MG.A.TO) closed down 1.35% 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.
Elsewhere on the corporate front, Goldcorp (G.TO) dropped 5.1% after the company said it is planning a private offering of approximately US$750.0 million of convertible senior notes due 2014.
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.
Meanwhile, the Industrial Product Price Index (IPPI) and the Raw Materials Price Index were both down 0.5% in April compared with March.
Tuesday will bring earnings results from MKS Inc. (MKS.TO). There is no major economic news scheduled for Canada as traders will watch for pending home sales data from the U.S.
For comments and feedback: contact email@example.com