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Toronto stock market rises to close up 107 points as energy stocks move up
, _+ S, F1 d) o! C wEdmonton Journal Published: Monday, September 18, 2006 * A( j/ Q0 y: W2 [& V
TORONTO (CP) - Rising energy prices boosted the Toronto stock market Monday, as the TSX's main index closed higher after last week's decline and investors looked ahead to Wednesday's U.S. Federal Reserve interest rate announcement. % C9 V1 ^9 v1 u% u1 e: r
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Toronto's S&P/TSX composite index rose 107.51 points to close at 11,763.55 after surging ahead 120 points earlier in the day following last week's 200-point index decline. The energy sector, which makes up about 30 per cent of the index, rose by 2.7 per cent as the October contract for light sweet crude oil on the New York Mercantile Exchange climbed 47 cents to settle at US$63.80 a barrel.
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) P6 Y4 i! p, r% SIt rose as high as US$64.45 during the session, after hitting the US$62 level last week. West Texas Intermed rose 46 cents to US$63.80. / g/ _2 Q4 M3 k/ }: p0 \9 j
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EnCana Corp. (TSX:ECA) shares rose $2.04, or four per cent, to close at C$52.72.
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"After the recent pullback that we have gone through in the last week or two, you expect to have some sort of stabilization process," said Joe Ismail, technical analyst at Maison Placements Canada. 9 l4 R4 W2 r; I- k. t6 N3 v
% \3 A, t. @5 ^5 r$ @# A6 y8 p6 ZA slight rebound in energy and a reshuffling of portfolios as a number of futures and indexes expired appear to be behind Monday's more positive tones, but Ismail said "a second down leg is coming in" for the Toronto market.
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"That will take the TSX to that 11,000 zone, and that should be the corrective phase." ' l$ S, {! { l$ t- u2 _$ H4 d$ r
2 ?* c; B+ ~+ z, J2 u; q5 P+ i& uThe Canadian dollar closed at 89.45 cents US, up 0.09 of a cent. 3 U3 [* \2 x5 y2 F" _# I- S' k" ^
6 G0 D5 P6 w3 c1 J. Z" JA Statistics Canada report showed Canadians invested C$6.3 billion in foreign securities in July, and foreign purchases of Canadian securities picked up speed to $3.2 billion after a brief pause in June.
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- I3 k" Y3 ]- ^# T# GAlso Monday, TD Bank (TSX:TD) forecast the Canadian economy will be in for a bumpy ride as its U.S. counterpart loses momentum over the next year, but it isn't expected to mirror that marked slowdown.
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In New York, markets were little changed as investors made few big moves as they waited to see whether the Fed will keep the benchmark interest rate at 5.25 per cent. A rise in oil prices also led investors to question if the pullback in energy prices was nearing an end.
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9 ? _9 |( \4 g$ NThe TSX gold sector climbed 2.6 per cent as the contract for bullion on the Nymex rose $9.80 to US$592.80 an ounce. Shares in Barrick Gold Corp. (TSX:ABX) rose 76 cents to C$32.50.
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- k. l2 x; r9 g! D) ^0 {6 q% k# I: VThe metals and mines sector also contributed to the increase, moving up 1.15 per cent. Shares in Teck Cominco Ltd. (TSX:TCK.B) gained $1.59 to $68.18. % _ G+ K7 f2 B
/ ~' Z( Y% T/ i% uThe technology sector was the lead decliner, with Nortel Networks (TSX:NT) falling 3.36 per cent to $2.59. 4 `$ ?0 G$ n; [
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The TSX Venture Exchange closed up 11.28 points to 2,577.52.
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% l6 s; z, G( N0 J2 U6 KThe Dow Jones industrial average closed down 5.77 points to 11,555 after gaining 170 points last week. The Nasdaq composite index climbed 0.16 points to close at 2,235.75, while the S&P 500 index rose 1.31 points to 1,321.18. |
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