Toronto stock market rises triple digits led by stronger commodities

By David Friend, The Canadian Press

TORONTO - Stronger commodity prices gave the Toronto stock market a jolt of energy near midday Friday, as U.S. investors kept New York markets holding steady.

The S&P/TSX composite index was ahead 100.35 points to 11,255.35, and the Canadian dollar rose 0.48 of a cent to 93.19 cents US.

On the upside were TSX gold stocks, which gained two per cent. The December bullion contract picked up $13.70 to US$1,010.50 on the New York Mercantile Exchange, near its highest level since February.

And energy stocks were lifted 2.5 per cent after oilpatch giant EnCana Corp. (TSX: ECA.TO) announced it is reviving plans to split into two distinct oil and gas companies now that some optimism appears to be returning to the global economy. EnCana shares were up $3.52 to $62.86.

The October crude contract on the Nymex moved up five cents to US$71.99 a barrel.

On Wall Street, the Dow Jones industrial gained two points to 9,630. The Nasdaq composite index was up three points to 2,087 while the S&P 500 index gained two points to 1,047.

The U.S. Commerce Department reported that even though wholesale inventories fell for a record 11th straight month in July, sales rose by the largest amount in more than a year. The rising sales could lead businesses to start adding back to inventories, which would be a good signal for the economy.

Wholesale inventories fell 1.4 per cent, more than the one per cent drop economists expected, however wholesale sales rose 0.5 per cent, the fourth straight monthly increase.

FedEx, often considered a bellwether for the economy's health, raised its first-quarter earnings forecast because of stronger international shipments and cost-cuts.

In other corporate developments, Compton Petroleum Corporation (TSX: CMT.TO), a Calgary-based natural gas producer, has struck a bought deal financing to issue 120 million shares and warrants at $1.25 each to raise $150 million. The company calls the move the first major step in Compton's restructuring.

Xceed Mortgage Corp. (TSX: XMC.TO) shares popped 11 per cent after the company, originally a specialist in lending to home buyers who don't qualify for loans from Canada's big financial institutions, said it would move forward with plans to become a deposit-taking bank. Shares were up 18 cents to $1.87.

Canwest Global Communications Corp. (TSX: CGS.TO) said Thursday that its Canwest Limited Partnership subsidiary has agreed to pay all outstanding interest and fees due under the senior credit facility. Shares were unchanged at 13 cents.

Overseas markets were buoyed by strong reports out of China about industrial output, investment, loans and retail sales. Japan's market was one of the few to decline amid worries about the weakening dollar against the yen, which could pressure exporters revenues.

Other countries have also signalled growth is under way or just beginning to bloom. Canada's central bank indicated Thursday it sees growth outpacing its earlier forecasts as it maintained interest rates as low as they can go. Brazil's government said Friday it has emerged from recession with a report of second-quarter economic growth.