Roundup: Canadian stock market extends gains over upbeat export data

Canada's main stock market in Toronto on Thursday extended gains as the latest trade data eased investors' concerns about the economic outlook.

Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index added 51.16 points, or 0.38 percent, to 13,596.41 points on the closing bell, with five of the eight most weighed sectors in the green.

Statistics Canada reported Thursday that Canada's exports rose 2.3 percent in July and were concentrated in non-energy products. Meanwhile, imports were up 1.7 percent. And as a result, Canada's merchandise trade deficit with the world narrowed from 811 million Canadian dollars (about 615 million U.S. dollars) in June to 593 million Canadian dollars in July.

Analysts believed that the upbeat exports data indicate a positive signal for the economic outlook in the following months of this year, after the official data confirmed Tuesday that the Canadian economy contracted for a second consecutive quarter, which is considered as a "technical recession" in the first half year.

"With the Canadian dollar now at the 2-year mark since it first started to depreciate, the non-energy export sector is expected to finally get that positive boost from the currency," Diana Petramala, an economist from TD Bank, said in report Thursday.

On performance of the sectors, Financials advanced 0.72 percent and Telecom, up 1.82 percent, was the biggest gainer by percentage, when the telecommunication giants Rogers Communications Inc. rallied 2.5 percent to 44.7 Canadian dollars and Telus Corp. strengthened 1.77 percent to 43.16 Canadian dollars per share.

And the mining sector gained 1.64 percent over a rally in basic metals shares, with First Quantum Minerals Ltd. jumping 3.44 percent to 6.62 Canadian dollars a share.

But the gold shares lost ground when Barrick Gold Corp. plunged 3.94 percent to 8.53 Canadian dollars a share.

And Energy inched lower 0.02 percent, when Canadian Natural Resources Ltd. dropped 1.25 percent to 28.33 Canadian dollars a share.

Besides, Health Care made downward correction by 0.53 percent after leading TSX gainers in the previous trading day, when its heavyweight Valeant Pharmaceuticals International, Inc. lost 2.33 percent to 301.25 Canadian dollars a share.

On the currency front, the Canadian dollar moved higher to 0.7579 U.S. dollar Thursday, when compared with 0.7535 U.S. dollar Wednesday. Endit