CANADA STOCKS-Earnings, Europe auctions lift TSX

Tue Apr 24, 2012 10:37am EDT
 
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* TSX up 37.33 points, 0.3 pct, at 12,026.28
    * Seven of 10 sectors on firmer ground

    By Claire Sibonney	
    TORONTO, April 24 (Reuters) - Toronto's main stock index
edged higher in early trade Tuesday, taking its cue from solid
domestic earnings and steady global markets after European
government debt auctions saw good demand.	
    Canadian National Railway, the most influential
gainer, rose 1.4 percent to C$80.50, after reporting late on
Monday that its full-year earnings would come in at the top end
of an earlier forecast. 	
    "I'm very impressed with CN Rail and I'm happy to see CP
Rail deliver good earnings after years of disappointments. Of
course, they benefited from a mild winter," said Barry Schwartz,
portfolio manager at Baskin Financials Services.	
    Last week, CN's smaller rival Canadian Pacific Railway
, in the midst of the final rounds of a tough proxy
fight, said soaring profit and efficiency gains prove that its
growth plan is back on track. 	
    CP was up 1 percent to C$74.94 on Tuesday.	
    Other key names on the rise were Royal Bank of Canada
, up 0.5 percent to C$56.80, Suncor Energy, up
0.6 percent to C$31.20, and Potash Corp, up 0.5 percent
to C$42.63.	
     At 10:12 a.m. (1412 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 37.33 points, or 0.31
percent, at 12,026.28. Seven of the 10 main sectors were
stronger including financials, up 0.3 percent, and materials, up
0.5 percent. Energy shares were flat.	
    The market's rise followed news the Netherlands successfully
completed a bond auction a day after its government collapsed in
a crisis over budget cuts, but investors demanded a slightly
greater risk premium as euro zone yields have edged higher.
 	
    Spanish and Italian bond auctions also were well covered but
their borrowing costs rose again, showing political uncertainty
remained uppermost in investors' minds. 	
    On the Canadian earnings front, diversified miner Teck
Resources rose 1.1 percent to C$35.73 after reporting
a 13 percent increase in quarterly operating earnings.
 	
    Celestica Inc surged nearly 9 percent to C$9.09
after the contract electronics manufacturer posted a 44 percent
rise in first-quarter net profit and said customer demand is
stabilizing.