Roger Biduk - Gold & Materials Lead as Bay Street Soars

Roger Biduk writes:

Stock markets in Canada and the United States found their way towards triple-digit gains after enduring a session that spent most of the day searching for direction.
Both sides of the border saw the major indexes jump more than five per cent.

In Toronto the rising price of gold led a heavily traded session that also included enthusiastic gains in mining and materials stocks. The S&P/TSX composite index rose 430.63 points to 8,155.39. The TSX Venture Exchange rose 12.22 points to 704.17.
The Canadian dollar closed at 78.30 cents US, up 0.99 of a cent after Statistics Canada reported the headline inflation rate eased last month to 2.6 per cent, from 3.4 per cent in September.

On the TSX, bank and insurance stocks were up 0.3 per cent as TD Bank (TSX:TD) shares continued to decline, down a further eight per cent to $40.13. The bank disclosed Thursday a $350 million in quarterly credit trading losses.

The gold index was the major gainer, up 27.2 per cent, as Barrick Gold Corp. (TSX:ABX) was ahead $8.70 to $35.50.

Roger Biduk writes:
The mining index rose 18.1 per cent. HudBay Minerals Inc. (TSX:HBM) and Lundin Mining Corp. (TSX:LUN) plan to merge in an all-stock deal worth $814 million, based on current market prices. HudBay shares were down 40 per cent to $3.16 and Lundin rose nearly four per cent to $1.05.

Energy stocks were also higher, up 10 per cent as the January crude contract rose 51 cents to US$49.93 per barrel. Oil prices were still 13 per cent lower compared to last week's closing price.

In earnings, Sears Canada Inc. (TSX:SCC) reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 per cent from the comparable period a year ago despite a tough retail environment. Its shares increased 20 cents to $16.74.
Catalyst Paper Corp. (TSX:CTL) fell five cents to 25 cents after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
Research in Motion (TSX:RIM) shares were ahead $3.10 to $57.09 on the day the company debuted the BlackBerry Storm touch-screen mobile device in North America - a product intended to steal market share from Apple Inc.'s iPhone.

www.rogerbiduk.ca
www.rogerbiduk.wordpress.com