CANADA STOCKS-TSX ticks up on industrials after 2 days of losses

Wed Mar 21, 2012 4:53pm EDT
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* TSX up 5.79 points at 12,436.49
    * Seven of 10 sectors higher
    * Industrials lead market higher

    By Jennifer Kwan	
    TORONTO, March 21 (Reuters) - Toronto's main stock index
eked out a tiny gain on Wednesday after two days of losses,
lifted by firmness in industrial issues, but the mood largely
followed a broader global trend of muted equities trading.	
    Top movers included Canadian National Railway, up
1.8 percent at C$78.88, and Canadian Pacific Railway, up
2.1 percent at C$78.53, helping push up the broader industrials
sector by 1.1 percent. Toronto-Dominion Bank gained half
a percent to C$83.60, while the overall financial sector gained
0.03 percent.	
    Bombardier, which is in the industrials group,
shot up 3.2 percent to C$4.18 after it signed a pact with
China's Comac to seek opportunities to cooperate on aspects of
Bombardier's new CSeries and Comac's C919 aircraft.
    "This will help the planemaker to save some costs," said
Marcus Xu, director of equity investments at Genus Capital
Management in Vancouver. Bombardier was one of the most heavily
traded stocks on the market.	
    Xu said another area of potential support came from U.S.
data. Sales of existing U.S. homes slipped 0.9 percent to an
annual rate of 4.59 million units, the National Association of
Realtors said. But January's sales pace was revised up to 4.63
million units from a previously reported 4.57 million units.
    "It was tiny bit lighter than expectations, but it's pretty
good," said Xu. "To me, the absolute level looking at a trend
matters more than the expectations."	
    The Toronto Stock Exchange's S&P/TSX composite index
 finished the day up 5.79 points, or 0.05 percent, to
12,436.49, snapping two days of losses. Seven of its 10 main
sectors were higher.	
    U.S. stocks struggled on Wednesday to rise above recent
highs, hampered by losses in risk-associated sectors like energy
and financials. 	
    Losses were concentrated in heavily-weighted materials, down
0.4 percent, and energy sectors, down 0.1 percent.	
    Enbridge sank 1.1 percent to C$37.22 after the
company said it would increase its preferred share offering to
C$350 million. 	
    "A large shareholder sold their position, and it was done at
a very small discount, so that's the reason the stock is down,"
said Marc-Andre Robitaille, president and portfolio manager at
Robitaille Asset Management.