TORONTO - The Toronto stock market extended its winning streak to five sessions Monday thanks to strong gains in energy, base metals and financial stocks.
However, New York indexes were down sharply following last week's strong start to 2009 trading as investors took miserable vehicle sales figures as an excuse to take some profits.
Toronto's S&P/TSX composite index closed up 51.4 points to 9,285.51 after running ahead just over 11 per cent last week.
"People thought the selloff was overdone and by buying at the end of the year, they would buy the things that others were selling in the hopes that they rally in the new year," said Kate Warne, Canadian markets specialist at Edward Jones in St. Louis.
Warne added that performance differed from other recent, significant rallies "because in the past, what we have seen is big rallies and then relatively big selloffs so I would say this is a good move."
The TSX Venture Exchange added 27.8 points to 874.49 while much higher oil prices helped send the Canadian dollar ahead 1.77 cents to 84.03 cents US after reaching 84.27, its highest level since early November.
New York's Dow Jones industrial average was down 81.8 points to 8,952.89 after netting more than six per cent last week, partly on high hopes that the U.S. Congress would enact a comprehensive recovery plan in time for president-elect Barrack Obama to sign his when he takes office Jan. 20.
However, congressional leaders are saying the package -- which aides say could cost as much as US$775 billion, including a reported $300 billion in possible tax cuts -- won't be ready until mid-February at the earliest.
The Nasdaq composite index was 4.18 points lower to 1,628.03 while the S&P 500 index was off 4.35 points to 927.45.
Ford Motor Co.'s U.S. sales plummeted 32 per cent in December while General Motors Corp. saw sales tumble 31 per cent -- but that was still better than the loss in the neighbourhood of 40 per cent that had been expected -- and Chrysler's December sales dropped 53 per cent.
Ford shares rose 12 cents to US$2.58 while GM shares gained six cents to US$3.71.
In Canada, overall auto sales were down 21.3 per cent in December.
The U.S. Commerce Department said that construction spending dropped by 0.6 per cent in November, less than half of the 1.3 per cent decline economists expected. A 4.2 per cent fall in housing construction was partially offset by a surprisingly strong 0.7 per cent rise in non-residential activity.
The TSX energy sector was the big driver of the advance, up 3.25 per cent as the February crude contract in New York closed up $2.47 to US$48.81. Oil is up almost US$9 since the middle of last week.
Traders say fighting in the Middle East is partly behind the rise.
But OPEC cutbacks and a dispute between Ukraine and Russia over gas imports are also responsible.
Canadian Natural Resources (TSX:CNQ) advanced $3.11 to $55.10 while EnCana Corp. (TSX:ECA) rose $2.67 to $62.42.
The base metals sector rose 9.25 per cent as Teck Cominco Ltd. (TSX:TCK.B) improved $1.18 to $8.20 and Sherritt International (TSX:S) gained 34 cents to $3.99.
The financial sector was ahead 1.6 per cent after Finance Minister Jim Flaherty met with senior bankers over the availability of loans to businesses and individuals.
Toronto-Dominion Bank (TSX:TD) shares gained $1.24 to $45.33 after it signed a deal to increase a preferred share financing to $225 million. The nine million non-cumulative five-year class A preferred shares have a price of $25 and an interest rate of 6.25 per cent.
The gold sector fell 7.25 per cent as the February bullion contract in New York faded $21.70 to US$857.80 an ounce.
Goldcorp Inc. (TSX:G) gave back $3.35 to $34.72 while Barrick Gold Corp. (TSX:ABX) backed off $2.94 to $40.78.
In corporate news, Apple Inc. founder and chief executive Steve Jobs, who is looking to quell rumours about his health, said his doctors have discovered a hormonal imbalance that has been causing his weight loss.
Jobs said he will undergo a "relatively simple" treatment and will remain as head of Apple until he recovers and the company's shares climbed $3.83 to US$94.58.
