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* TSX ends 171.94 points at 11,507.71
* All 10 subsectors higher
* Financial, materials and energy lead way higher
* U.S. economy’s services data helps market mood
By Jennifer Kwan
TORONTO, June 5 (Reuters) – Canadian stocks ended higher on
Tuesday on strength in the bigger bank and commodity-linked
sectors as better-than-expected U.S. services sector data eased
investor worries about slowing global growth.
The pace of growth in the U.S. services sector picked up in
May as a gauge of new orders improved, according to an industry
report released on Tuesday. The Institute for Supply
Management’s services index edged up to 53.7 from 53.5 in April,
a touch above economists’ forecasts for it to hold steady.
The data helped calm market jitters after a previous string
of weaker North American data, which had battered market
confidence amid a deepening euro zone crisis.
The key energy, financial, materials and energy sectors led
Toronto’s main stock index higher after skidding 7.4 percent,
6.8 percent and nearly 11 percent, respectively, in May.
Rising shares included Toronto-Dominion Bank, up 1.5
percent at C$77.68, and Royal Bank of Canada, which
climbed 1.6 percent to C$50.38.
Suncor Energy added 2.1 percent at C$28.30 and
Encana gained 6.9 percent at C$21.02.
“Partly we had some good economic news. The ISM was a bit
stronger than expected. We also just became oversold. There’s a
point in time when people are willing to come in,” said Ian
Nakamoto, director of research at MacDougall, MacDougall &
MacTier, of the market rally.
The Toronto Stock Exchange’s S&P;/TSX composite index
ended the day up 171.94 points, or 1.5 percent, at
11,507.71. All of its 10 main sectors were higher.
The blue-chip S&P;/TSX 60 index added 8.90 points to 654.36.
Despite the rise in Toronto and other equity markets, the
euro fell and German bond prices gained on Tuesday as the euro
zone’s debt crisis showed signs of escalating after Spain said
it was being shut out of credit markets.
“Until we get some concrete evidence they’re coming up with
a solution, markets will be range bound, and we’re going to have
each and every day lots of volatility,” Barry Schwartz,
portfolio manager at Baskin Financial Services, said of the
broader euro-zone debt crisis.
Elsewhere, TransCanada Corp, up 0.8 percent at
C$42.48, will build a C$4 billion pipeline to serve Royal Dutch
Shell Plc’s planned liquefied natural gas plant on
British Columbia’s northern coast, the company said on Tuesday.
Belden Inc, a manufacturer of cable-TV and
networking products, said on Tuesday it will buy Canadian rival
Miranda Technologies Inc MT.TO for C$377 million to expand its
presence in niche markets. Miranda, the second most heavily
traded stock on the TSX, was up 62 percent at C$16.87.
Shares of QLT Inc rose 5.5 percent TO C$8.25 on
Tuesday, a day after an activist investor’s slate of nominees
for the board of the Canadian eye drug developer prevailed in a
shareholder vote, signaling a shakeup at the company.
(Editing by Padraic Cassidy)