China’s Growth Affects Canadian Markets. RIM among Top Gainers
Northern, WI 1/20/2013 (avauncer) – Standard & Poor’s/TSX Composite Index saw a third week high, as Canadian stocks rise to new heights. This is the longest stretch in past one year seen by the Canadian benchmark equity. The main reason behind this is China’s growth accelerating after a two year drop. All in all 50.96 points, or 0.4% were added to the S&P/TSX before it settled at 12,725.69, in Toronto. The Canadian benchmark equity has gained 1% this week.
The BlackBerry maker, Research in Motion Ltd (TSE:RIM) also saw a 7% high after Jefferies & Co. (NYSE:JEF) analyst upgraded the stocks to buy, citing the new software by Research In Motion Ltd (TSE:RIM) which offers corporate e-mail on rival devices. Research In Motion Ltd. (TSE:RIM) which trades on the US market as Research in Motion Limited (NASDAQ:RIMM), is the top gainer in the S&P/TSX to close at C$16.
Meanwhile after Canadian provinces reported to buy bulk supply of generic drugs, a 5.2% low was seen by Shoppers Drug Mart Corp. (TSE:SC), which was the highest since April 2010. Shoppers Drug Mart (TSE:SC), the largest drugmaker chain in the country, is the only company to see a loss among Canadian equity benchmark. All Canadian provinces except the Quebec and three other territories are likely to buy these generic medicines in bulk to lower prices. The drugs represent 20% of publicly funded expenditure on such drugs in Canada,. This was confirmed in a government press release in Canada. It lost 5.2% to close on C$42.
While talking to reporters Ian Nakamoto the director of research at MacDougall MacDougall & MacTier Inc, a $4 bilion company, said that the company’s hard run in China seem to have come to an end now. He also confirmed that the growth rate is higher than the previous quarter which is an indication of generating some money into the Canadian market.
China’s GDP rose by 8% in the final quarter as compared to last year, which was up from a three year low of 7% in the same period. This was reported by National Bureau of Statistics. More than 80% top Canadian groups gained today.
Canadian factory sales also saw a six month high since November as unfilled orders also went to a three years high, which increased the automobile and aircraft demand. Sales increased by 2% to C$50 billion ($50.4 billion), as reported by Statistics Canada today from Ottawa.
Harry Winston Diamond Corp (NYSE: HWD) also gained 3% to close on $15 due the increase of diamond supply as reported by Nomura Holdings Inc. analyst. Nomura also confirmed that the prices will hover around the current levels in the current financial year.
First Quantum Minerals Ltd. (TSE:FM), the copper producer gained 1%. Copper slated for delivery in March also increased by 0.5% and settled at $4 per pound in NewYork. The company is amid a C$5 billion hostile bid for Inmet Mining Corp (TSE:IMN).
Canada’s third-largest bank, Bank of Nova Scotia (TSE:BNS) claimed to appreciate small loans in Mexico to push around 20% businesses in Latin America. Lending margins in Latin America are double to the Canadian Average.
Research In Motion Ltd. (TSE:RIM) gained 7% and closed at $16. Jefferies & Co. (NYSE: JEF) also gained 0.54% to close at $19. First Quantum Minerals Ltd. (TSE: FM) was also among the gainers as it closed the day at $21 with a 1% high.
Shoppers Drug Mart Corp. (TSE:SC) lost its price by 5% to close at $42. It plunged by $2. Harry Winston Diamond Corp (NYSE: HWD) gained 3% to $15. Inmet Mining Corp (TSE:IMN) stumbled by 0.57% to close at $71. Bank of Nova Scotia (TSE:BNS) gained 0.77% and closed at $58. Research in Motion Limited (NASDAQ:RIMM) went up by 6.24% to $15.84.