Business
Toronto solidifies gains
Toronto solidifies gains
About this update from Bombardier Inc. Class A
[{"type":"text","content":"\nToronto solidifies gains\n\nBanks the main agent\n Mar. 11, 2009 (Baystreet.ca) -- 04:35 pm EST\nThe Toronto stock market added today to impressive gains racked up in the previous session, which were sparked by news that American financial services giant Citigroup Inc. was operating at a profit for the first two months of this year.New York markets leveled off as caution returned to the market after a day of furious buying.Toronto's S&P/TSX composite index finished Wednesday's trading ahead 132.83 points to 8,013.24, after rising 313 points or 4% on Tuesday, its biggest gain this year.Analysts say that Tuesday's rally was also fed by short covering, which occurs when investors need to buy stock to replace shares that were borrowed and then sold on expectations of a market decline.Investors also took in comments from U.S. Treasury Secretary Timothy Geithner that the Obama administration will unveil the government's plan for dealing with banks' toxic assets within the next couple of weeks.During an interview aired Tuesday night on "The Charlie Rose Show," Geithner said the plan the administration has put together will provide financing to private investors who are willing to buy banks' bad assets. He predicted the plan will succeed but will take time to work.The TSX financial sector was flat following Tuesday's 12% surge as TD Bank advanced 46 cents to $38.96 and Scotiabank lost 36 cents to $28.34.Bank of Montreal declined 46 cents to $29.25 as it announced a preferred share issue worth $150 million to $225 million paying 6.5% annually. BMO had previously bulked up its capital in December with a $1-billion issue of common shares and $450 million in 99-year notes that pay 10.2% interest and qualify as Tier 1 capital.The energy sector backed off following the release of a report from the U.S. Department of Energy showing that crude supplies in the U.S. climbed unexpectedly by 700,000 barrels last week against an expected drop of one million barrels. EnCana Corp. fell 84 cents to $48.33 and Suncor Inc. backed off 79 cents to $29.61.The gold sector shone, sparked by Goldcorp Inc., which climbed $2.28 to $36.27.Base metal stocks also made headway with Teck Cominco Ltd. ahead 33 cents to $4.42 and FNX Mining rose 21 cents to $3.84.Bombardier Inc. shares jumped 21 cents to $2.80 after it said today it had finalized an agr...