CANADA STOCKS-TSX climbs as financials, golds drive gains

Mon Jun 10, 2013 11:16am EDT
 
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By John Tilak
    TORONTO, June 10 (Reuters) - Canada's main stock index
advanced on Monday as an upgrade of the U.S. credit outlook
lifted shares of financial companies and helped offset sluggish
economic data from China.
    Standard & Poor's upgraded its credit outlook for the United
States government to "stable" from "negative," reducing the
threat of a further downgrade to the country's sovereign rating.
 
    But the gains were kept in check as data showed risks are
rising that China's economic growth will fall further in the
second quarter and that full-year forecasts will be cut further.
The numbers also indicated weakness in May exports and
struggling domestic activity. 
    The Toronto market recovered after six straight daily
declines.
    "The market is a little unsettled because it hasn't shown
much strength of late," said Fred Ketchen, director of equity
trading at ScotiaMcLeod.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 22.77 points, or 0.18 percent, at 12,396.07. 
    Six of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, advanced
0.2 percent. Gold producers were up 0.6 percent as the price of
bullion edged higher. 
    Miner Barrick Gold Corp rose 1.3 percent to
C$20.87.
    Financials, the index's most heavily weighted sector, added
0.5 percent.
    Royal Bank of Canada, the country's biggest lender,
gained 0.8 percent to C$60.49 and played the biggest role of any
single stock in leading the market higher.
    Shares of energy producers rose 0.2 percent. Suncor Energy
Inc climbed 0.8 percent to C$31.91.
    In company news, Air Canada said it is moving ahead
with plans to trim its costs by up to some 15 percent over the
medium term, even as it pushes ahead with plans to boost its
system capacity over the coming year. The stock was little
changed.