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Friday, September 11, 2009

Bay Street Stocks Add To Multi-Month Best Behind Resource Sectors - Canadian Commentary

The S&P/TSX Composite Index has jumped 97.84 points or 0.87% to move at 11,253.13 points. The market gained for a fifth time in six sessions.

Energy stocks are up 2.5%, led by a 6% spike for Encana (ECA.TO). The company announced plans to split into two separate companies last night. The move is expected to close November 30.

Gold stocks have gained 1.7% as the precious metal hit a fresh 18-month high. Iamgold (IMG.TO) is up 4.1%, Eldorado (ELD.TO) has added 4% and Royal Gold (RGL.TO) has added 3.5%.

In other corporate news, Altius Minerals Corporation (ALS.TO) has climbed 1.6% after the company reported first quarter net loss of C$597,000 or C$0.02 per share, compared to net earnings of C$380,000 or C$0.01 per share in the year-ago quarter.

Jaguar Mining (JAG.TO) has slipped 0.6% after the company said that it has entered into an agreement with a group of initial purchasers to issue and sell US$150 million of 4.50% senior convertible notes due 2014.

Harry Winston Diamond (HW.TO) has slipped 4.6% after the company posted second quarter net loss of US$24.5 million or US$0.32 per share, compared to net earnings of US$49.9 million or US$0.81 per share in the prior year quarter.

Compton Petroleum Corp. (CMT.TO) has plunged 20.4% after the company announced it will issue an aggregate of 120 million units on a bought deal basis at a price of C$1.25 per unit for aggregate gross proceeds of C$150 million.

In economic news, Canadian new home prices rose 0.3% in July following a 0.2% decline in June. This was the first increase since September 2008. Economists expected new home prices to slip 0.1% in July.

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