September 10, 2010 / 8:58 PM / 7 years ago

CANADA STOCKS-TSX ends higher as Enbridge spill lifts oil

* TSX gains 0.53 percent at 12,097.09

* Nine of 10 sectors higher

* Worst fears of double-dip recession fade (Updates to close, adds quote)

TORONTO, Sept 10 (Reuters) - Toronto’s main stock index ended higher for the first time in four sessions on Friday, supported by strength in oil prices following a shutdown of a major pipeline supplying Canadian oil to the United States.

U.S. crude rose more than 2 percent to $76 a barrel after a leak on Thursday forced Enbridge (ENB.TO) to shut down the biggest pipeline supplying Canadian oil to refineries in the U.S. Midwest and to a key storage hub in Oklahoma. [O/R]

Enbridge was down 0.72 percent at C$52.50, while the index’s energy sector gained 0.57 percent.

EnCana Corp (ECA.TO) rose 0.84 percent to C$30.18, while Suncor Energy (SU.TO), the country’s biggest oil company, rose 1 percent to C$34.10.

“The whole point is there could be a disruption in oil supplies for a bit and anything that could potentially disrupt oil supplies has the tendency to push prices up pretty sharply. The energy group is definitely benefiting at least for the day on that sentiment,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished 63.56 points, or 0.53 percent, higher at 12,097.09. Nine of its 10 sectors were higher, including heavily weighed financials, which are often a play on the economy.

Financials were up 0.6 percent, led by Manulife Financial MFC.TO, up 3.7 percent at C$13.48, while Royal Bank of Canada (RY.TO) gained 0.73 percent to C$53.50.

On the data front, investors may have been encouraged by Canada’s labor market, which added 35,800 jobs in August, more than expected, even though the details of the jobs report were weak. But U.S. wholesale inventories surged by the largest amount in two years in July, heartening sentiment that had recently been driven lower on fears of a double-dip recession. [ID:nN10243874]

“It seems to be a day when there’s renewed optimism about growth prospects on both sides of the border,” Picardo said.

Elsewhere, BCE Inc (BCE.TO), Canada’s biggest communications company, rose 0.43 percent to C$32.99 after announcing it will to pay C$1.3 billion for the 85 percent of broadcaster CTV it does not already own. [ID:nN10251109]

Lululemon Athletica LLL.TO (LULU.O), the specialty clothing retailer, jumped 13 percent to C$41.89 after posting a more than two-fold jump in second-quarter profit as its newest stores sold more yoga and athletic wear. The company also raised its full-year outlook. [ID:nSGE68907P]

Potash Corp (POT.TO) fell 0.3 percent to C$154.20 after the the Canadian government said on Thursday it was aware of concerns that have been raised about a possible takeover of the world’s biggest fertilizer producer.[ID:nLA9KE61P]

Research In Motion RIM.TO was off 1.7 percent at C$45.69 after an analyst downgraded the share-price target for the BlackBerry maker. [ID:nWNAB4856]

$1=$1.04 Canadian Reporting by Claire Sibonney, Jennifer Kwan, and Ka Yan Ng; editing by Peter Galloway

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