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TSX lifted by higher oil prices, gold and silver gain

Published: 20:28 09 Jun 2011 BST

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Canadian equities rose on Thursday on the back of higher crude oil prices, giving the energy sector a boost.

The S&P TSX Composite Index was up by 75.68, or 0.57%, to 13,259.47, while the more junior TSX Venture Exchange increased 7.73, or 0.40%, to 1,959.39.

Gold futures were up by $4.80 to US$1,542.90 per ounce, while silver contracts rose more than 2% to $37.47 per ounce. Base metals were weaker with copper down 0.04% near market close. Crude oil  jumped by more than 1%, or $1.17 to $101.91 per barrel, continuing yesterday's gains after OPEC surprised investors and decided not to boost production quotas on Wednesday.

Suncor Energy (TSE:SU) rose 0.21% to $39.93, while Canadian Natural Resources (TSE:CNQ)increased 1.02% to $40.66. Cequence Energy (TSE:CQE) was up 3.3%.

Due to the strong commodity prices, metals and mining stocks had the largest gain on the Canadian markets, up by 0.87%. This was followed by advances from the energy, industrials and info tech sectors. The only two losing groups on the day were the telecom and utilities sectors.

Gold companies saw some strong leads, with Barrick Gold  (TSE:ABX), Goldcorp (TSE:G), Kinross Gold (TSE:K), and Yamana Gold (TSE:YRI), rising 0.42%, 1%, 3.25%, and 1.5%, respectively.

Cline Mining (TSE:CMK) climbed 0.89% or two cents to $2.26, while Quadra FNX (TSE:QUX) gained 1.3% to trade at $13.7.     

In earnings news, Dollarama (TSE:DOL) reported Thursday that first quarter sales and profits rose as the company benefited from the addition of new stores and improved product margins. The Canadian dollar store operator posted net income of $30.4 million, or $0.40 per share, a 35% hike over the year-ago period. Revenues increased 11%.

Meanwhile, Transat (TSE:TRZ.B) posted 39% higher second-quarter profits as it recorded increased bookings, but a strong Canadian dollar and rising fuel costs cut-in to its results.

Armtec (TSE:ARF) shares dropped sharply by more than 60% as the company announced it suspended its quarterly dividends following a disappointing first quarter. The infrastructure product manufacturer said that the unprecedented weather conditions, paired with continued margin compression in the company's engineering solutons business caused a wider loss for the company.

On the economic front, a report from Statistics Canada revealed that merchandise exports fell 1.9% in April, while imports also decreased 0.6%. The country's trade deficit grew to $924 million in April, from $417 million the previous month.

Sino-Forest Corp (TSE:TRE), the commercial forest plantation operator which saw its shares plunge last week on allegations that it overstated its assets in China, rose more than 5% on Thursday as the company awaits the results from the OSC investigation announced yesterday.

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