TSX flat despite surge in China exports
The Toronto stock market closed little changed Monday but mining stocks got a lift from strong Chinese economic data.
The S&P/TSX composite index closed 6.7 points lower at 11,947.13 after the main index initially surged more than 100 points amid data showing China’s exports jumped 18 per cent in December, much more than the 5 per cent increase expected. It was also the first increase in more than a year.
The TSX made it as high as 12,067.2 in early trading, the first time it had been above the 12,000 level since Sept. 29, 2008.
"The economy is humming there. There are concerns, but by and large it’s going great," said John Stephenson, portfolio manager at First Asset Funds.
"It’s very positive and it’s a continuation of the theme that where the growth is going to be is in the developing world in the future."
The strong gains melted away during the morning as early improvements in the mining sector moderated and energy stocks turned negative as investors awaited the start of fourth-quarter corporate earnings reports.
The Canadian dollar slipped 0.24 of a cent (U.S.) to 96.76 cents.
The TSX base metals sector was the strongest component, ahead 1.5 per cent as March copper rose four cents to $3.44 a pound.
Teck Resources advanced 41 cents (Canadian) to $42.20 while Labrador Iron Mines Holdings Ltd. gained 41 cents, or 13.53 per cent, to $3.44.
The February bullion contract in New York closed up $12.50 (U.S.) to $1,151.40 an ounce.
The energy sector turned 0.46 per cent lower as oil prices fell, with the February crude contract on the New York Mercantile Exchange falling 23 cents to $82.52 a barrel. EnCana Corp. fell 46 cents (Canadian) to $35.52.
Talisman Energy shares lost 73 cents to $19.85 as the Calgary-based oil and gas company said it plans to spend $5.2 billion on capital projects in 2010, a 10 per cent increase over 2009.
The TSX Venture Exchange rose 3.42 points to 1,608.53.
New York markets were mainly higher ahead of the launch of earnings season. .
The Dow Jones industrial average was 45.8 points higher to 10,663.99, while the Nasdaq composite index declined 4.76 points to 2,312.41 and the S&P 500 index gained two points to 1,146.98.
The Canadian Press
Filed under: money by Wolf