CANADA STOCKS-TSX makes broad but cautious push higher

Thu Jun 2, 2011 11:21am EDT
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   * 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
 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: Quote), up 1.4 percent
to C$54.16, while Suncor Energy (SU.TO: Quote) rose 0.71 percent to
C$39.48. Canadian National Railway (CNR.TO: Quote) 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
 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: Quote) 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)