CANADA STOCKS-TSX rallies as jobs data lifts sentiment

Fri May 6, 2011 5:26pm EDT
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   * TSX up 111.22 points, or 0.83 pct, at 13,566.60
 * Eight of 10 main sectors end higher
 * Index down 2.7 percent on week
 (Adds details, analysts comments)
 By Solarina Ho
 TORONTO, May 6 (Reuters) - Toronto's main stock index
rebounded from a week-long retreat on Friday as strong
employment numbers in both Canada and the United States lifted
sentiment, easing some of the worries that sent commodity
prices into a tailspin earlier this week.
 The dominant energy and materials sectors, which together
make up about 50 percent of the TSX index, were up 1.63 percent
and 0.87 percent respectively, though both resource groups gave
back earlier gains.
 "We seemed to have lost steam," said Elvis Picardo, analyst
and strategist at Global Securities.
 "That may indicate some reluctance among some investors to
leave long positions over the weekend, which is not really
surprising, given the volatility we've had so far this week in
the steep decline in commodity prices."
 Canadian Natural Resources CNQ.TO, which reported a 94
percent plunge in first-quarter profit after markets closed on
Thursday, managed to rise 2.57 percent to C$42.30. Suncor
Energy SU.TO gained 1.67 percent to C$40.26.
 Teck Resources TCKb.TO advanced 2.13 percent to C$48.80
and Kinross Gold K.TO gained 1.75 percent to C$14.54.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished 111.22 points, or 0.83 percent higher, at
13,566.60. Eight of the 10 main sectors were stronger.
 The TSX fell about 2.7 percent on the week, with four
straight days of declines that drove it to its lowest levels
since mid-March.
 "One of the biggest drivers this week has been commodities,
obviously. We were seeing quite a bit of speculation come out
of the commodity market, that's ultimately good for the economy
and stocks," said Youssef Zohny, portfolio manager at Van Arbor
Asset Management in Vancouver.
 Canada and the United States created far more jobs than
expected in April, with Canada adding 58,300 jobs in April,
more than double expectations, and recovering all the full-time
positions lost in the recession.
 South of the border, hiring hit a five-year high in April,
indicating underlying strength in the U.S. economy.
[ID:nOAT004799] [ID:nN06160819]
 U.S. data helped boost gold prices, with bargain-hunters
taking advantage and getting back into the market. Copper eked
out a modest rise on the heels of the jobs data, but strength
in the U.S. dollar against the euro sapped earlier gains.
 Oil prices erased an early session bounce though declines
were modest compared to the record collapse on Thursday. [O/R]
[GOL/] [MET/L]
 Manulife Financial MFC.TO was the most influential gainer
on the index, surging 5.11 percent to C$17.47 after several
analysts raised their price targets for North America's largest
life insurer. [ID:nL3E7G61CT]
 Manulife posted a lower quarterly profit on Thursday on
claims related to the Japanese earthquake, but said it was
actively on the lookout for acquisitions, especially in Asia.
The overall financial group climbed 0.68 percent.
 ($1=$0.97 Canadian)
 (Additional reporting by Claire Sibonney; editing by Rob