Roger Biduk ; Soaring Base-Metal Sector Sends Bay Street Higher

Roger Biduk writes:

Investors feeling more optimistic about 2009 snapped up stocks in some of the worst performing sectors and sent the Toronto stock market sharply higher on the first day of trading in the new year.
Toronto's S&P/TSX composite index was up 246.41 points to 9,234.11 with all sectors positive save gold and consumer staples stocks, gaining 923.56 points or 11 per cent this week.
The TSX ended 2008 down 35 per cent for the year - the second-worst year ever, compared with a 37 per cent decline in 1931.
The TSX Venture Exchange added 49.67 points to 846.69.
The CDN$ edged up 0.16 of a cent to 82.26 cents US.

The battered TSX base-metals sector, down 68 per cent last year, was up almost 16 per cent as the March copper contract ran up 4.7 per cent to US$1.461 a pound after the metal plunged 54 per cent last year. Teck Cominco Ltd. (TSX:TCK.B) rose $1 to $7.02 and FNX Mining (TSX:FNX) surged 91 cents or 30 per cent to $3.95.

The energy sector was up 6.25 cent as the February crude contract in New York gained $1.74 to US$46.34 a barrel. Petro-Canada (TSX:PCA) rose $2.38 to $29.10 and EnCana Corp. (TSX:ECA) gained $2.79 to $59.75.

Oil surged more than $5 a barrel Wednesday after Russia threatened to cut off natural gas supplies to Ukraine. Russia followed through with that threat Thursday, though both countries pledged to keep supplies flowing to the rest of Europe.

The Toronto financial sector, down 38.5 per cent in 2008, was ahead 1.4 per cent with Royal Bank (TSX:RY) up 85 cents to $36.95 while Bank of Montreal (TSX:BMO) headed 90 cents higher to $32.15.

The consumer staples sector was down 0.7 per cent as Shoppers Drug Mart (TSX:SC) gave back $1.55 to $46.50.

The gold sector was weak, down two per cent as the February bullion contract in New York faded $4.80 to US$879.50 an ounce.
NovaGold Resources Inc. (TSX:NG) shares ran up 13 cents to $1.90 after Electrum Strategic Resources LLC of New York bought a 30 per cent stake in the Vancouver-based company for US$60 million. High River Gold Mines Ltd. (TSX:HRG) shares retreated three cents or 19.7 per cent to 34.5 cents is looking to float more equity or debt while reporting a cash shortfall amid ongoing production troubles in Africa and Russia.

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