Toronto stocks were extending gains for a fourth session Friday morning amid upbeat jobs data and service sector activity report from the U.S., Canada's largest trading partner.
Meanwhile, Canada's unemployment rate unexpectedly edged higher in January.
The S&P/TSX Composite Index added 46.36 points or 0.37 percent to 12,599.84, after gaining just over 100 points or 1 percent in the past three sessions.
The Diversified Materials Index was the major gainer, adding nearly 2 percent. First Quantum Minerals (FM.TO), Teck Resources (TCK_B.TO) and Inmet Mining (IMN.TO) moved up around 2 percent each.
Metal mining company Magma Metals (MMW.TO) skyrocketed 70 percent to C$0.145 after announcing that Panoramic Resources Ltd. (PAN.AX) has made an unsolicited proposal to acquire all of the Magma shares it does not currently own, in exchange of 2 Panoramic shares for every 17 Magma shares held.
The price of crude oil was supported by data from China that revealed services sector expanded at a steady pace in January. The HSBC China Services PMI was firm at 52.5 for a third month in January, signaling steady but sluggish expansion. Crude for March was up $0.61 to $96.97 a barrel.
In the oil patch, Coastal Energy (CEN.TO) and Petrobank Energy (OBG.TO) gained over 5 percent each.
Paper products company Domtar Corp. (UFS.TO) edged up 0.50 percent even after reporting a significant drop in its fourth-quarter net earnings to $61 million or $1.63 per share from $325 million or $7.59 per share last year. Excluding items, net earnings were $93 million, lower than $103 million, while adjusted earnings per share rose to $2.49 from $2.41 a year ago. Analysts were expecting the company to report earnings of $2.24 per share this quarter.
Meanwhile, gold stocks were trading lower as bullion prices retreated from their recent highs. The price of gold was slipping Friday morning, with gold for April shedding $15.00 to $1,744.30 an ounce.
Royal Gold (RGL.TO), Detour Gold (DGC.TO), Eldorado Gold (ELD.TO) and Allied Nevada Gold (ANV.TO) lost over 3 percent each.
Interactive technology products company SMART Technologies (SMA.TO) announced that its third-quarter GAAP net income was $10.9 million or $0.09 per share down from $12.5 million or $0.10 per share in the prior-year period. However, on an adjusted basis, net income was $16.7 million or $0.14 per share, up from $15.9 million or $0.13 per share in the same period last year. Analysts were expecting the company to report earnings of $0.13 per share this quarter. The stock dived 13 percent.
In economic news Statistics Canada said the unemployment rate edged up 0.1 percentage points to 7.6 percent as more people searched for work. 2,300 jobs were added across the nation last month. On an annual basis, the number of full-time workers was up 1.2 percent, but the number of part-time workers declined 1.2 percent.
From south of the border, the U.S. Labor Department said the economy added 243,000 jobs in January, beating consensus estimates for a 135,000 additions, Further, the unemployment rate came in at 8.3 percent. Economists were looking for the jobless rate to hold steady at 8.5 percent.
A report from the Institute for Supply Management revealed that activity in the U.S. service sector expanded at a faster than expected rate in January. The ISM said its non-manufacturing index rose to 56.8 in January from a revised 53.0 in December, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge up to 53.3 from the 52.6 originally reported for the previous month.
Elsewhere, euro zone retail sales fell 0.4 percent month-on-month in December, Eurostat reported. Economists were expecting turnover to expand 0.3 percent. In 2011, the average volume of retail trade index fell by 0.6 percent. On a yearly basis, retail sales decreased 1.6 percent in December, following November's revised 1.5 percent drop. The decline also exceeded the 1.3 percent fall expected by economists.
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