CANADA STOCKS-TSX climbs with bank shares; gold miners slide

Mon Jul 14, 2014 10:45am EDT
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* TSX up 41.72 points, or 0.28 percent, at 15,167.22
    * Seven of 10 main index sectors advance
    * Bombardier jumps after winning tentative orders

    By John Tilak
    TORONTO, July 14 (Reuters) - Canada's main stock index rose
on Monday as strength in the financial and energy sectors helped
overcome a drop in gold-mining shares after the price of bullion
fell sharply.
    The Toronto market's rebound followed a decline in the
previous week over concerns about the prospects of corporate
earnings. It is now up about 11 percent this year.
    The strength in equity markets and a burst of profit-taking
fueled a 2.2 percent drop in gold prices, which have been
rallying in recent weeks. Shares of gold producers gave back 2
    Investors also prepared to scan testimony from Federal
Reserve Chair Janet Yellen, due this week, for clues about the
U.S. central bank's monetary policy direction.
    "The feeling is that things will pick up. (Yellen) will
probably stay on the same track, keep rates relatively low,"
said Irwin Michael, portfolio manager at ABC Funds.
    "I suspect she won't do anything audacious to rock the
boat," he added. "So it's still a very friendly time for
equities, as long as earnings remain on track."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 41.72 points, or 0.28 percent, at 15,167.22.
Seven of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector,
advanced 0.6 percent. Bank of Montreal added 0.6
percent to C$80.32, and Royal Bank of Canada climbed 0.5
percent to C$78.75.
    Shares of energy producers gained 0.9 percent, with the
price of Brent crude oil rising. Suncor Energy Inc 
jumped 1.3 percent to C$44.82, and Canadian Natural Resources
Ltd rose 0.9 percent to C$48.02. 
    Among gold-mining stocks, Goldcorp Inc shed 2.7
percent to C$29.71, and Barrick Gold Corp slipped 1.8
percent to C$20.33.
    In corporate news, Bombardier Inc's CSeries
aircraft program received a boost as the company announced two
tentative orders for a total of up to 24 jets worth nearly $1.6
billion. The stock was up 2.8 percent at C$3.87. 

 (Editing by James Dalgleish)