June 2, 2011 / 3:25 PM / 6 years ago

CANADA STOCKS-TSX makes broad but cautious push higher

3 Min Read

   * TSX rises 0.42 percent to 13,584.51
 * Eight of 10 main sectors climb
 * Progress Energy jumps on C$1.07 bln deal  (Adds details)
 TORONTO, June 2 (Reuters) - Toronto's main stock index climbed broadly on Thursday, led by resource issues, managing to recover a portion of the steep slide suffered the day before.
 The index, which recorded a drop of nearly 2 percent on Wednesday -- its biggest one-day slide since Aug. 11 -- pushed higher on strength in the hefty energy and materials groups.
 The energy sector was up 0.75 percent, benefiting from firmer oil prices, while materials rose 0.34 percent. Industrials also contributed to the gains.
 Top advancers included Potash Corp (POT.TO), up 1.4 percent to C$54.16, while Suncor Energy (SU.TO) rose 0.71 percent to C$39.48. Canadian National Railway (CNR.TO) rose 1.75 percent to C$74.54.
 Gold miners also helped despite bullion prices that retreated from recent gains. [ID:nLDE7510HP] 
 "The fact that materials are up as strong as they are is interesting given that gold is down," said Andrew Pyle, an associate portfolio manager at ScotiaMcLeod.
 "That to me tells me that this uptick that we're seeing in the TSX is probably short-term. Something needs to validate the movement in materials."
 At 10:40 a.m. (1440 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 56.63 points, or 0.42 percent, at 13,584.51. Eight of the index's 10 main sectors were higher.
 While new U.S. claims for unemployment benefits fell by 6,000 last week to a seasonally adjusted 422,000, the labor market by most accounts remains weak. The figure comes ahead of Friday's key U.S. nonfarm payrolls report for May. [ID:nOAT004815] [ID:nN31283560]
 Recent data ranging from consumer spending to manufacturing has suggested the U.S. and other global powerhouse economies, are hitting a soft patch.
 "There are more cracks opening up in the economic side, especially in the States. We've seen a clear deterioration in the numbers in the last few weeks," said Pyle.
 "Clearly, if the U.S. employment numbers are not good, then that's just going to be one more element of concern in the market."
 In individual company news, Laurentian Bank (LB.TO) fell 3.1 percent to C$50.05 after it reported results that missed expectations. [ID:nN02247242]
 Progress Energy (PRQ.TO) jumped 6.6 percent to C$14.90 after it said it will sell half its working interest in a North Montney joint venture to Malaysia's state oil firm Petronas for C$1.07 billion to develop its large shale assets in British Columbia. [ID:nL3E7H21VB]
 ($1=$0.98 Canadian)  (Reporting by Ka Yan Ng; editing by Rob Wilson)                                        

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