CANADA STOCKS-TSX gains on firm commodities, global outlook

Thu Apr 19, 2012 11:19am EDT
 
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* TSX up 71.10 points at 12,199.99
    * 7 of 10 main sectors higher
    * Materials, energy, financials lead the way
    * Poll shows Canada growth seen easing in 2012

    By Jennifer Kwan	
    TORONTO, April 19 (Reuters) - Toronto's main stock index
rose on Thursday morning, supported by steady commodity prices
and solid demand at a Spanish bond sale, with investors more
upbeat about the global economic outlook.	
    Key names on the upside included Potash Corp, up
1.4 percent at C$43.47, and Goldcorp, which rose 1.6
percent to C$41.15, while Suncor Energy rose 1.5 
percent at C$31.70 as gold and oil prices climbed.  
The broader materials and energy sectors led the market higher.	
    Also supportive was Royal Bank of Canada, which
climbed half a percent to C$57.24, and Manulife Financial
 up 1.5 percent to C$13.42, helping financials higher.	
    "We're getting a little bit better sentiment regarding
global growth of late and what we've found is that the Canadian
markets are obviously becoming increasingly sensitive to not
only the economic trends domestically and even in the U.S. but
around the globe," said Craig Fehr, Canadian market strategist
at Edward Jones in St. Louis, Missouri.	
    "As we get a little bit better sentiment and better data
from China, emerging markets, even to some degree some relief in
the European markets, that has really reflected positively."	
    Still, Canada's economy will likely lag the United States
this year, slowing compared with 2011 and probably falling short
of cheerier economic forecasts touted by the Bank of Canada this
week, a Reuters poll found on Thursday. 	
    While Canada will fare better than many of its Western
peers, especially in Europe where many countries are in or close
to recession, there was a sense of caution in the forecasts of
around 30 economists polled over the past week.	
    Europe was in the spotlight again on Thursday. Solid demand
at Spain's bond sale gave a slight boost to global stocks and
oil prices, but investors remained cautious due to wider
concerns over the government's ability to tackle a ballooning
deficit as its economy shrinks. 	
    At around 11:00 a.m. (1500 GMT), the Toronto Stock
Exchange's S&P/TSX composite index was up 71.10
points, or 0.59 percent, at 12,199.99, with most of its 10 main
sectors higher.	
    In company news, Fibrek Inc, down 11 percent at 96
Canadian cents, was the most heavily traded stock by volume on
the TSX. The Supreme Court of Canada on Wednesday effectively
blocked the specialty pulp maker's private placement to Mercer
International Inc by declining to hear Fibrek's appeal
of a lower court decision, another setback to the companies'
planned merger. 	
    African Barrick Gold reported a 17 percent fall in
quarterly output, partly due to lower ore quality at its Buzwagi
mine in Tanzania, prompting fears that the company might hit the
low end of its full-year production outlook. ABG
is a unit of Barrick Gold, which added 0.4 percent at
C$40.82 on the TSX.