Canadianstocks were relatively unchanged yesterday after a last hour surge on rising commodity prices helped paremuch of the losses suffered in early-session trading.
The S&P/TSX Composite Index, which was down 123 points at the lunch hour, ended down just 16.44 points, or 0.16%, to 10077.70. The TSX Venture Exchange jumped 15.16 points, or 1.43%, to 1078.27 and the Canadian dollar climbed to US$0.8606, up 28 basis points.
"Stocks started weaker but really went on a tear," saidRobert Floyd, leadmanager at R.A. Floyd Capital Management Inc.
He said trading early on was dominated by those investors taking profits, but as the session progressed, rising commodity prices, particularly those for oil and base metals, became difficult to resist.
"A lot of investors are simply looking ahead to an economic recovery and looking beyond some of the short-term issues still ahead of us,"Mr. Floyd said.
In Toronto, gainers and losers cancelled eachother out while seven of 10 subindices closed in negative territory.
The materials group climbed 4.12% as base metals rose, including copper, which continues to hover around US$2.05 per pound. Gold prices were also higher, jumping US$10.40 toUS$923.90 an ounce. BarrickGoldCorp. was up 3.75% to $40.62 and Goldcorp Inc. rose 4.8% to $39.31.
"Technically, it looks like gold is trying to break through to the high side and gold stocks are firming up a little bit more," Mr. Floyd said.
Energy stocks fell 0.28%, despite a US$0.35 climb in oil prices to US$58.85 a barrel. Financials also fell, losing 1.83%.
In the U.S., stocks were mixed as investors weighed their concerns regarding the recent flurry of capital-raising activity against comments from former Federal Reserve chairman Alan Greenspan, saying the U.S. housing and financial markets appear to be improving.
The Dow Jones Industrial Average jumped 50.34 points, or 0.60%, to 8469.11.
The S&P 500 lost 0.89 points, or 0.10%, to 908.35 and the NASDAQ Composite Index lost 15.32 points, or 0.88%, to 1715.92.
Ford Motor Co. lost 18% on dilution fears after the automaker became the latest American corporation to announce an equity raise, saying it is planning to issue 300 million shares of common stock in a public offering.
Mr. Greenspan, meanwhile, said during a conference of the National Association of Realtors in Washington that the housing industry appears close to bottoming. He added that companies are having an easier time raising capital, suggesting financial markets are starting to improve.
