Energy and base metal stocks climbed to new heights on higher commodity prices Thursday. The S&P/TSX composite index jumped 84.49 points to close at 8,124.66, a new 30-month high.

Energy stocks led all TSX sectors with a 3.3% gain.

Oil prices remained above the US$33 US-a-barrel level as low U.S. inventory levels pressured the futures market.

Petro-Canada surged $3.10 to $63.30 — a new 52-week high. EnCana gained 96¢ to $52.10 and Canadian Natural Resources climbed $3.27 to $65.02

Base metal stocks were another source of strenght. Alcan hit a 52-week high when its stock rose $2.03 to $61.53. Falconbridge gained $1.13 to $29.69, setting a new 52-week high for that stock. Inco rose 33¢ to $49.46, while and Noranda added 83¢ to $19.48.

Patheon fell $2.71 to $10.74 after it reported weaker fourth-quarter profits.

Telus shares slipped 7¢ to $26 as it forecast higher 2004 profits, but not quite as high as what analysts had been forecasting.

The junior S&P/TSX venture composite index slipped 4.15 points at 1,654.34.

U.S markets were bolstered by figures that showed first-time claims for jobless benefits fell to their lowest level in seven weeks.

The blue-chip Dow Jones industrial avearage and the broader Standard & Poor’s 500 ended at their highest levels in about 19 months for a third straight day.

The Dow climbed 102.82 points to 10,248.08, its highest finish since May 17, 2002.

The S&P 500 Index rose 12.70 points to 1,089.18, its highest close since May 23, 2002.

The tech-laced Nasdaq composite index gained 34.85 points to 1,956.18.

The Canadian dollar slipped 0.20¢ to close at US75.24¢.


Energy shares fuel TSX gains
U.S. markets rise on news of improving economy

A continuing rally in energy share has Toronto higher at midday. The S&P/TSX composite index is up 48.75 points, at 8,088.92.

The energy group is ahead 1.7%. Oil prices climbed on Thursday as U.S. fuel stocks showed a heavy decline just as the world’s biggest energy consumer braced for another spell of cold weather.

Petro-Canada has gained $1.21 to $61.41, while Canadian Natural Resources is up $1.75 to $63.50. Husky Energy has jumped 62¢ to $23.87.

In other news, shares of generic drug maker Patheon took a tumble after it reported lower fourth-quarter earnings and warned of two “difficult” quarters ahead for parts of its business.

Patheon shares are down $2.20 to $11.25.

Telus, Canada’s second-largest phone company, says it is aiming to ring up a 28% jump in profits next year on strong growth in its wireless business.

The company says it expects to make $1.05 to $1.25 a share next year, compared with 85 to 95 cents per share this year. It shares are off 57¢ at $25.50.

BCEsays subsidiary Bell Canada wants to have all of its phone traffic carried on a national internet protocol backbone within three years. BCE shares are off 2¢ at $28.85.

In M&A news, Transcontinental, the parent company of Investment Executive has bought CC3, a U.S. direct marketing firm, in a $140 million deal that the company says will boost its earnings next year.

Transcontinental says the deal is for $133 million in cash plus warrants for 350,000 Transcontinental shares with an exercise price of $19.91 each. Transcon shares are off 25¢ at $24.25

On Wall Street, technology shares are climbing after reports showed that the labor market and the overall U.S. economy are improving.

Initial jobless claims plunged, and the U.S. Conference Board suggested the economy would gather strength in the new year.

The tech-heavy Nasdaq composite index has risen 20.73 points to 1,942.06. The blue-chip Dow Jones industrial average is up 56.6 points to 10,201.86. The S&P 500 Index is up 5.99 points at 1,082.47.