TSX Holds Steady Over Final Hour, Closes Up 100 Pts; Bombardier Flies Fly


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Canada's main stock index held steady over the final hour but still ended Tuesday's session up 100 points on renewed buying, maybe bargain buying, after strong selling pressure over recent weeks. The renewed buying was spurred by improved global economic forecasts from the International Monetary Fund and improved Canadian economic forecasts from the Bank of Canada.

Among the top gainers was Bombardier Inc. (BBD-B.TO). Bombardier gained more than 3% on reports its aircraft maintenance and spare-parts unit may double revenue to $3 billion annually in the next five to seven years as the planemaker expands in emerging markets such as Russia and China.

Energy Fuels Inc. (EFR.TO) gained 20% and Denison Mines rose 17% after they announced a letter agreement whereby EFR will acquire all of DML's US-based mining assets in exchange for 425.441M shares of EFR, effectively valuing the assets at $106M.

Helping sentiment for energy stocks, oil climbed to a two-week high in New York as Spain raised more than its maximum target at a debt auction and the International Monetary Fund bolstered its global growth forecast.

The IMF said on Tuesday that global growth is slowly improving as the U.S. recovery gains momentum and fears about Europe ease, although it did add risks remain high and the situation is very fragile. It revised upward its global growth forecast for this year to 3.5% from 3.3% in January, and to 4.1% for 2013 from 3.9% previously.

Closer to home, the Bank of Canada raised its growth and inflation forecasts for this year and said the economy will return to full capacity - the limit at which it can grow without generating excessive inflation - in the first half of 2013 rather than in the third quarter as it predicted in January. This started a debate on when, rather than whether, rates will rise.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities

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