TSX posts triple-digit gain in early trading on economic optimism

By David Friend, The Canadian Press

TORONTO - The Toronto stock market started the Tuesday session with a triple-digit gain as investors found further optimism in the global economic recovery, while gold hit a record high and oil prices moved higher.

The S&P/TSX composite index launched early into gains across most sectors in early trading, rising 214.64 points to 11,318.13, after rising 144.29 points on Monday.

The Canadian dollar rose 0.67 of a cent to 94.12 cents US, as the greenback fell towards a low for the year against the euro and the yen after a report that Arab states and other countries were contemplating an end to the U.S. currency's role in the pricing of oil.

New York markets also moved ahead, the Dow Jones industrials rising 108 points to 9,708. The Nasdaq composite index climbed 31 points to 2,099 while the S&P 500 index gained 15 points to 1,055.

On the TSX, the gold sector led gains, up 4.3 per cent, as the December bullion contract set a new record high, up $16 to US$1,034 an ounce on the New York Mercantile Exchange after rising as high as $1,038 in electronic trading earlier in the day.

The energy sector was ahead 1.8 per cent as the November crude contract gained 97 cents to US$71.29.

In Canadian corporate news, shares in Canwest Global Communications Corp. (TSX: CGS.TO) were suspended after the media conglomerate announced that certain units of the company will seek court protection under the Companies' Creditors Arrangement Act.

Jean Coutu Group (TSX: PJC-A.TO), the largest pharmacy chain in Quebec, reported a 7.3 per cent increase in revenue to $608.7 million in its latest quarter. Its stock rose seven cents to $9.94.

Armtec Infrastructure Income Fund (TSX: ARF-UN.TO) announced a $26.9-million contract to supply concrete sewer piping for a 15-kilometre segment of the York Durham Sewage System. Units of the company gained 19 cents to $19.64. On Monday, the company had announced it will cut 100 jobs as it streamlines operations after a period of growth that has seen it more than quadruple in size in two years.

In the tech sector, BCE Inc.'s Bell Canada (TSX: BCE.TO) says it will begin offering two models of the Apple iPhone smartphone in November, a move that will put added pressure on rival Rogers Communications (TSX: RCI-B.TO). BCE shares were up 21 cents to $26.51, while Rogers lost 38 cents to $28.57.

Internet sports coverage provider NeuLion, Inc. (TSX: NLN.TO) has agreed to acquire B.C.-based webcasting company Interactive Netcasting Systems Inc in a cash-and-stock deal worth more than $8.1 million.

Overseas, in afternoon trading, Britain's FTSE 100 gained 1.6 per cent, Germany's DAX index jumped 1.7 per cent, and France's CAC-40 gained 1.5 per cent. Japan's Nikkei stock average rose 0.2 per cent.