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Published on: 11/28/2002
Last Visited: 11/28/2002
"You are seeing a switch from defence to offence," said John Kellett, vice-president of Canadian equities for RBC Global Investment Management.Investors shifted money out of bonds and into stocks yesterday, putting stress on the bond market, he said.
The benchmark S&P/TSX composite index gained 126.48 points or 1.95 per cent yesterday to 6,604.25.Financial stocks led the Toronto Stock Exchange's broad-based rise as investors shrugged off dismal profit reports from two of Canada's largest banks, and looked instead for better results in 2003.
In New York, the Dow Jones industrial index climbed 2.94 per cent or 255.26 points to 8,931.68.Technology companies fuelled much of the move, although bank, drug, and retail stocks joined in the advance.
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"When you see a high level of loan-loss provisions from the banks, that is exactly the time you should be buying these things," said Mr. Kellett, who manages the Royal Dividend Fund.
The rally also included some cyclicals -- companies expected to see improved results with a healthier U.S. economy.Shares of Inco Ltd. rose $1.02 to $33; Alcan Ltd. $1.54 to $50.10; and Canadian National Railway Co. $1.36 to $64.90.
Shares of Celestica Inc., which provides electronic manufacturing services to original equipment manufacturers, jumped $1.94 to $28.45 as investors bet on a future recovery of the high-tech sector.Nortel Networks Corp. shares added 20 cents to $2.95.