CANADA STOCKS-TSX edges higher on materials, Forzani deal

Mon May 9, 2011 11:06am EDT
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   * TSX climbs 0.16 percent to 13,588.00
 * Seven of 10 main sectors rise
 * Canadian Tire to buy Forzani for C$771 mln; shares rise
 * Nexen sags more than 4 pct on suspended operations
 (Adds details)
 By Ka Yan Ng
 TORONTO, May 9 (Reuters) - Toronto's main stock index edged
up slightly on Monday morning as commodity prices recovered
from last week's hefty losses, boosting shares of mining and
energy companies.
 The materials group, up 0.73 percent, was supported by a
rebound in prices for copper, gold and silver, and other
metals. [O/R][MET/L] [GOL/]
 Barrick Gold ABX.TO rose 1 percent to C$45.89, while
Goldcorp G.TO advanced 1.35 percent to C$48.
 The energy sector was little changed as Nexen NXY.TO slid
more than 4 percent to C$22.67 after it said production and
operations had been halted in Yemen as a result of a strike.
  Other energy issues were generally higher, with Husky
Energy HSE.TO ahead 0.83 percent at C$27.83, and Encana
ECA.TO up 0.35 percent at C$31.50.
 At 10:45 a.m. (1445 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 21.40 points, or 0.16
percent, at 13,588.00. Seven of the index's 10 main groups were
up, led by materials, although a 0.32 percent decline in
financials weighed on overall gains.
 "It's waffling here," said Ian Nakamoto, director of
research at MacDougall, MacDougall & MacTier. "We're in a bit
of a void here. I think we're going to be more following the
macroeconomic trends, and the trends have been showing, to me,
a lower rate of growth in the overall economy."
 Canadian Tire CTC.TO CTCa.TO and Forzani Group FGL.TO
both rose on Monday on news of a friendly deal that will give
Canadian Tire a commanding stake in the sporting goods market
at a time when U.S. retailers are eyeing growth opportunities
north of the border. [ID:nL3E7G91PE]
 Canadian Tire, which already holds about 4 percent of
Forzani shares, offered to take full ownership of the country's
largest sporting goods retailer for C$771 million.
 Forzani jumped 49 percent to C$26.22, in line with the 50
percent premium over Friday's closing share price that Canadian
Tire has offered for each Forzani share.
 Canadian Tire was up 2.78 percent at C$60.22. The consumer
discretionary group rose 0.7 percent.
 "Investors seemed to be looking at the commodity space to
what's going to be taken out next. It makes sense to me what
Canadian Tire's doing, but it certainly came as a surprise to
me," said Nakamoto. "I think they have proven themselves as
pretty good operators and acquirers."
 (Reporting by Ka Yan Ng, editing by Rob Wilson)