Bay Street stocks closed modestly higher on Monday after backing away from its highs of the day. The S&P/TSX Composite Index gained 92.59 points or 0.96% to close at 9,688.80. Toronto's main index climbed as high as 9,928.75 in early-trading as a Chinese bailout plan pushed resource stocks higher.
Gold stocks led the gainers, adding 6.2% for the day. Material stocks added 3.5%. The precious metal closed at $746.50, up $12.30 on the Comex. Agnico-Eagle Mines (AEM.TO) rose 9.4%, Kinross (K.TO) added 8.2% and Barrick Gold (ABX.TO) gained 6.4%.
Energy stocks also rose, adding 2.7%. Light sweet crude for December delivery closed at $62.41, up $1.37 on the session. Oil reached as high as $65.56 in early trading.
Interoil led the charge, adding 7.9%. Vermilion (VET.UN.TO) climbed 7.04%, Canadian Natural Resources (CNQ.TO) climbed 6.4%, Suncor (SU.TO) added 6.2% and Niko Resources (NKO.TO) gained 3%.
On the downside, Addax Petroleum Corp. (AXC.TO) lost 2.6% after announcing third-quarter sales volumes declined 4%. The company announced third quarter net income of US$248 million or US$1.59 per share from US$122 million or US$0.78 per share last year.
Telecommunications stocks added 1.3% for the day, led by a 2.8% gain for Rogers Communications (RCI.B.TO) and a 2.55% climb by Telus (T.TO).
The gains were limited as Nortel Networks Corp. (NT.TO) plunged 25.5% after the company announced a new restructuring plan that includes the elimination of 1,300 jobs. The company reported a third quarter net loss of US$150 million or US$0.30 per share, compared to a profit of US$46 million or US$0.09 per share in the same quarter last year.
Industrials were flat for the day. WestJet (WJA.TO) fell 4.9% after the company announced third quarter net earnings of C$54.7 million or C$0.42, compared to C$76.1 million or C$0.58 reported in the third quarter of 2007, representing a 28.1% decrease.
On the economic front, traders pondered the release of data showing Canada's New Housing Price Index increased 2.1% in September on a year-over-year basis, a slower pace than the 2.3% advance in August.
On a monthly basis, prices rose 0.1% between August and September, resulting in a New Housing Price Index of 158.7.
Global markets surged early after China unveiled a plan to battle the global economic crisis. The fourth-largest economy said it would relax its credit conditions, reduce taxes and plans a stimulus package amounting to about 4 trillion yuan or nearly $570 billion.
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