TSX jumps 373 points, biggest 1-day gain of 2009

TSX jumps 373 points, biggest 1-day gain of 2009
Last Updated: Monday, May 4, 2009 | 5:54 PM ET Comments7Recommend24
CBC News

Stock markets surged upward Monday as better-than-expected U.S. data on construction spending and home sales raised investors' hopes that the economy is starting to turn around.

Toronto's TSX composite index closed up 373 points to 9,821 — the biggest one-day gain this year, a rise that extended a rally that has pushed the benchmark index up by more than 25 per cent since early March.

In New York, the Dow Jones gained 214 points, while the Nasdaq climbed 44 points.

Traders were heartened as the U.S. Commerce Department said construction spending rose 0.3 per cent in March after five straight monthly declines. Economists had forecast a drop of 1.5 per cent. The National Association of Realtors reported that home sales rose 3.2 per cent in March.

On the TSX, the energy sector was 4.7 per cent higher as the June crude oil contract in New York rose $1.27 to $54.47 US a barrel. Petro-Canada gained $1.27 to $41 while EnCana Corp. was up $2.99 to $60.

The base metals sector was up more than nine per cent, with shares of Teck Resources Ltd. gaining $1.71, or 12 per cent, to $15.70 after the company announced a note issue.

"Back in the fall, credit markets were shut down completely — they couldn't have embarked on this then," said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier.

The gold sector advanced 4.7 per cent as the June bullion contract in New York rose $14 to $902.20 an ounce. Shares of Barrick Gold Corp. were up $2.05 to $36.45.

The Toronto financial sector rose 4.3 per cent with CIBC gaining $2.38 to $56 and Royal Bank climbing $1.45 to $43.47.

Stock markets in Asia and Europe also moved higher, with Hong Kong's Hang Seng index jumping 5.5 per cent, while Germany's DAX rose 2.6 per cent and France's CAC-40 gained 2.45 per cent.

Markets in London and Tokyo were closed for holidays.