All about business

North American stock markets surged to a sharply higher close yesterday as investors looked past dismal employment news from Canada and the U.S. to economic stimulus programs in both countries and an announcement of aid for the financial sector.

Toronto’s S&P/TSX composite index closed up 147.04 points, or 1.66 per cent, to 9,008.02 – its first close above 9,000 since Jan. 9 – leaving the main index in positive territory for the year to date.

The TSX gained 3.6 per cent on the week.

"The main driver is the (Obama administration’s) fiscal stimulus package and the announcement about the financial system and positive data we’re seeing from China," said Jennifer Dowty, portfolio manager at MFC Global Investment Management.

"You have some data from China that is starting to indicate we might be seeing some sort of pickup in demand," said Dowty.

"The Baltic Dry Index, a measure of shipping costs in commodities, gained on demand for raw materials. What we’re seeing is that China is coming back slowly into the market and buying and that gives investors optimism that things are slowly turning around."

Statistics Canada said Canada lost a record 129,000 jobs last month, far more than the consensus expectation of 40,000, and the unemployment rate surged more than half a point to 7.2 per cent, the highest level since November 2004.

The drop in jobs was bigger than in any single month during the recessions of the early 1980s and 1990s.

Still, the Canadian dollar closed up 0.37 of a cent (U.S.) to 81.6 cents.

And the Dow Jones industrial average rose 217.52 points to 8,280.59, netting a 3.5 per cent gain on the week after the U.S. labour department reported the U.S. economy lost 598,000 jobs during January, worse than the 524,000 expected.

The U.S. jobless rate rose to 7.6 per cent from 7.2 per cent.

On the TSX, the base-metals sector racked up solid gains for a second day, up 6 per cent, as the March copper contract in New York rose 13 cents to $1 ace cash advance.63 a pound.

The TSX Venture Exchange added 11.12 points to 909.34. New York’s Nasdaq composite index moved up 45.47 points to 1,591.71 and the S&P 500 gained 22.75 to 868.6.

The TSX financial sector rose 1.8 per cent ahead of an announcement from American Treasury Secretary Timothy Geithner on how the U.S. government will deploy the second half of a $700 billion bank bailout as well as other help for financial players. CIBC advanced $1.56 (Canadian) to $48.45 and National Bank improved $1.31 to $36.44.

TD Bank Financial Group confirmed it is raising its ownership of U.S. brokerage TD Ameritrade to 45 per cent from 39.9 per cent, at a cost of $515 million. TD shares were up 63 cents to $39.80.

The energy sector was ahead 1.6 per cent even as the huge job losses sent the March crude contract on the New York Mercantile Exchange down $1 (U.S.) to $40.17 a barrel.

Suncor Inc. was 83 cents (Canadian) higher at $25.49 and EnCana Corp. gained 61 cents to $56.31.

The Ontario Teachers’ Pension Plan has confirmed talks with Petro-Canada about creating more value for shareholders.

Petro-Canada shares were 21 cents better at $29.54.

The April bullion contract on the Nymex inched up a dime to $914.30 (U.S.) an ounce.

Research In Motion Ltd. added $2.16 (Canadian) to $72.10, while Potash Corp. rose $4.70 to $110.80.

Shares in Canwest Global Communications Corp. were up seven cents yesterday to 49 cents on news it is seeking to sell five TV stations. Analysts say it’s unlikely the company will find a buyer and it is more likely the stations will close.

The Canadian Press

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