CANADA STOCKS-U.S. data pulls TSX back from early rally

Fri Oct 1, 2010 12:57pm EDT
 
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 *TSX down 4.05 points at 12,364.60
 *Half of 10 main sectors weaker
 (Updates to midday)
 By Claire Sibonney
 TORONTO, Oct 1 (Reuters) - Toronto's main stock index was
little changed at midday on Friday as weak U.S. manufacturing
data pulled it back from an early rally and as investors took a
breather after the market notched big gains in September and in
the third quarter.
 "There's a lot to be positive about but there's a lot to be
cautious about because the market is up a lot," said Ian
Nakamoto, director of research at McDougall, MacDougall &
MacTier.
 Economically sensitive financial stocks fell 0.7 percent
following a report that showed U.S. factory activity slipped
last month. [ID:nN01241612]
 Bank of Montreal (BMO.TO: Quote) lost 0.8 percent to C$59.03 and
insurer Manulife Financial (MFC.TO: Quote) fell 0.9 percent to
C$12.86.
 The index's key energy sector, up 0.9  percent, and its
materials group, up 0.1 percent, led the gainers as commodity
prices rose.
  Oil rose above $81 a barrel, gold prices hit a record high
above $1,320 an ounce, while base metals rallied to their
strongest in more than two years.
 Oil company Canadian Natural Resources (CNQ.TO: Quote) jumped 3
percent to C$36.66 and base-metals miner Teck Resources
(TCKb.TO: Quote) advanced 1.1 percent to C$42.79. Gold miner Barrick
Gold (ABX.TO: Quote) added 0.2 percent to C$47.66.
 Factors driving commodity prices higher included the
weakening of the U.S. dollar on the prospect of quantitative
easing by the Federal Reserve as well as Chinese data that
showed manufacturing picked up steam in September, easing
concerns about the global recovery. [FRX/] [ID:nSGE690072]
 "I think the fears of a double dip (recession) are for the
most part off the table and people have accepted the fact that
we are in a low growth scenario," Nakamoto said.
  At 12:34 p.m. (1634 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was off 4.05 points at
12,364.60. Earlier in the day the TSX rose to its highest level
since September 2008. The index's 10 main groups were split
between gains and losses.
 Research In Motion RIM.TO, up 1.4 percent at C$50.79, was
in the spotlight as the Indian government said it has manual
access to chat communication on BlackBerry messenger services
and expects to get automated access from Jan. 1
[ID:nSGE6900BX]
 Alimentation Couche-Tard (ATDb.TO: Quote) was down 2 percent at
C$22.55. It abandoned its $2 billion hostile takeover bid for
Casey's General Stores (CASY.O: Quote) on Thursday, nearly half a year
after it made its initial offer for the U.S. convenience store
chain. [ID:nN30225942]
 ($1=$1.02 Canadian)
 (Additional reporting by Jennifer Kwan; editing by Peter
Galloway)