CANADA STOCKS-Teck equity sale pushes TSX to higher close

Fri Jul 3, 2009 5:14pm EDT
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* TSX up 37.19 points to 10,283.10

* Teck jumps 8.05 percent after China deal

* Thin trading with U.S. markets closed (Adds official closing numbers, details, quote)

By Nina Lex

TORONTO, July 3 (Reuters) -Toronto's main stock index closed higher on Friday as Teck Resources Ltd's TCKb.TO equity sale to China Investment Corp helped lift the resource-heavy market, but trading volumes were thin due to the Independence Day holiday in the United States.

Teck said it will sell a 17.2 percent stake in the company to state-owned CIC through a private placement that will raise C$1.74 billion ($1.5 billion). The deal will help Teck pay down debt while expanding China's portfolio of commodity investments. [ID:nN03153079]

The TSX index's materials sector climbed 0.92 percent with Teck shares, a top gainer, up 8.05 percent at C$19.99. Elsewhere in the sector, Potash Corp of Saskatchewan Inc POT.TO rose 1.98 percent to C$113.30, while Barrick Gold ABX.TO climbed 0.15 percent to C$39.71.

The S&P/TSX composite index .GSPTSE closed 37.19 points, or 0.36 percent, higher at 10,283.10. Nine of its 10 sectors were up, with only energy dropping.

"With the American market closed, the market is very thin. A lot of Canada accounts probably didn't even show up today given that the Americans were closed," said Irwin Michael, portfolio manager at ABC Funds. "It just sort of drifted."   Continued...