MW: Banks, metals, financials lead Canada shares higher
SAN FRANCISCO (MarketWatch) -- Canadian stocks ended up Friday, reversing an opening drop, as investors downgraded their fears of a U.S. car maker bankruptcy that could push the world further into recession.
The S&P/TSX Composite Index (CA:ISPTX: news, chart, profile) finished up 123.55 points, or 1.5%, at 8,515.45, after an early loss of more than 3%. For the week, the index gained 3.9%, but is still down nearly 40% this year.
Goldcorp Inc. shares rose 3.5% on the Toronto Stock Exchange, while Barrick Gold Corp. rose 2.7%, and Yamana Gold Inc. ended up 4%.
The gains came despite a sell-off in most metals. Gold for February delivery ended down $6.10 at $820.50 an ounce on the New York Mercantile Exchange. However, gold futures posted a weekly gain of $68.30, or 9%.
Stocks and commodities were roiled Friday by Washington's flailing attempts to come up with emergency loans to keep General Motors Corp. Ford Motor Co. and Chrysler LLC from slipping into bankruptcy.
After talks on a $14 billion rescue package failed in the U.S. Senate Thursday night, sparking a global stock sell-off, the U.S. Treasury said Friday it would lend funds to the auto makers until Congress can consider a long-term rescue package next year. See full story on car maker bailout.
After the market closed, CTV News reported late Friday on its Web site that the Canadian government will provide General Motors, Ford and Chrysler with CA$3.5 billion ($2.8 billion) to help shore up the Canadian auto sector, CTV News reported late Friday on its Web site. The support falls short of the CA$7 billion the automakers requested, the news agency said.
The financial sector also gained Friday, up 3.4%. Royal Bank of Canada shares gained 2.5%, while Toronto-Dominion Bank added 2.8%.
Canadian Imperial Bank of Commerce reversed earlier losses and ended up 0.7%.
On Friday, Statistics Canada said sales of passenger cars declined 3.4% to 72,623 units in October. Sales of North American-built passenger cars remained relatively unchanged from September, but sales of overseas-built passenger cars dropped 9.0% to their lowest level since Nov. 2007.
Other data Friday showed that in the third quarter, Canadian industries cut their use of production capacity for the fifth straight quarter, dragged down by the auto and construction sectors.
On the TSX, utilities reversed earlier declines and ended up 0.2%. Energy shares fell 0.4%.
