The Canadian stock market closed higher Thursday as commodity prices rebounded and better- than-expected earnings from insurance companies boosted financial shares.

The S&P/TSX Composite Index rose 58.35 points, or 0.47 percent, to 12,379.64 while the S&P/TSX Venture Composite Index increased 0. 87 points, or 0.09 percent, to 962.81.

Buyers stepped in and bought on the resource-based Toronto stock market as commodity prices bounced as the U.S. jobless claims dropped unexpectedly to its lowest level since January 2008 and the European Central Bank cut interest rates to record low.

With oil price rising for the first time in three days, the energy sector gained 0.5 percent. Canadian Natural Resources Ltd. advanced 1.6 percent to 29.47 Canadian dollars per share and Suncor Energy grew 0.8 percent to 30.82 Canadian dollars a share.

Financial shares contributed most to the gains on the Toronto Stock Exchange main index, rising about 1 percent. Canada's major insurer Manulife Financial Corp reported an encouraging first- quarter earnings result and its shares moved almost 4 percent higher at Thursday's close.

The metals and mining sector increased 0.9 percent with July copper on the New York Mercantile Exchange up 1 percent to 3.11 U. S. dollars a pound.

Statistics Canada reported Thursday that Canada swung to a slight trade surplus in March from February's deficit. Canada's merchandise exports increased 5.1 percent in March and imports rose 1.7 percent.

At closing, the Canadian dollar moved down to 0.9898 U.S. dollars at 5 p.m. local time (2100 GMT), compared with 0.9920 U.S. dollars Wednesday. Enditem

Go to Forum >>0 Comment(s)