By Sue Chang, MarketWatch
SAN FRANCISCO (MarketWatch) — Canadian stocks rose for a third straight session on Thursday as investors reacted to a move by the European Central Bank to supply U.S. dollars in coordination with other central banks.
The S&P/TSX Composite Index advanced 131.46 points, or 0.1.1%, to close at 12,424.8.
The European Central Bank, working with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, will conduct three operations to supply dollars until the end of the year. The first will be conducted on Oct. 12, followed by ones in November and December. Read details on central banks’ coordinated action.
Central banks boost dollar liquidity
Five central banks are moving to inject dollars into the European banking system, as fears of a sovereign-debt crisis mount.
In Toronto trading, most sectors rose, led by financial stocks. Manulife Financial /zigman2/quotes/208833709/delayed CA:MFC -1.10% soared 6.3%, Royal Bank of Canada /zigman2/quotes/200638870/delayed CA:RY -2.42% jumped 3.2% and Toronto-Dominion Bank /zigman2/quotes/209283160/delayed CA:TD -0.95% /zigman2/quotes/202133558/composite TD -1.22% climbed 2.5%, while Bank of Nova Scotia /zigman2/quotes/206642548/delayed CA:BNS -2.37% added 1.9%.
However, gold miners lagged as the price of bullion retreated below $1,800 an ounce in response to the European Central Bank’s liquidity-enhancing action.
Gold for December delivery slumped $45.10, or 2.5%, to $1,781.40 an ounce on the New York Mercantile Exchange. Read MarketWatch’s metals report
Shares of Yamana Gold skidded 2.4% and Goldcorp /zigman2/quotes/225792379/delayed CA:G -7.35% sank 1.1%.
Research In Motion , closed down 0.3% in Toronto. After the closing bell, the BlackBerry maker reported its second-quarter profit fell nearly 60% to 63 cents a share. In the U.S. market, RIM shares tanked 17% in after-hours trade following the release of its quarterly results. Read details on RIMM’s earnings
Shares of Silvercorp Metals /zigman2/quotes/210397281/delayed CA:SVM -0.64% /zigman2/quotes/209674256/composite SVM 0.00% , which had recently come under scrutiny for fraud allegations, rose 7.3%.
In currencies, the Canadian dollar recovered, with the U.S. dollar /zigman2/quotes/210561978/realtime/sampled USDCAD -0.0365% buying 98.33 Canadian cents versus 98.99 cents late Wednesday.
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