CANADA STOCKS-TSX gets boost from resources, Gildan weighs

Thu Dec 11, 2008 10:49am EST
 
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* Energy, materials lifted by higher oil, gold

* Gildan sinks 34 pct after results, '09 guidance

* BCE falls 2.9 pct as buyout collapses (Adds quote, details)

TORONTO, Dec 11 (Reuters) - Toronto's main stock index rose on Thursday morning as strength in commodity issues offset a slump in the consumer discretionary sector, which was pulled lower by weak quarterly earnings and guidance from Gildan Activewear Inc (GIL.TO: Quote).

Also in focus but largely shrugged off by the market was the collapse of the leveraged buyout of BCE Inc (BCE.TO: Quote) and uncertainty over the fate of the bailout of the U.S. auto industry.

Heavily weighted stocks that saw action included Barrick Gold (ABX.TO: Quote), up 3.3 percent at C$39.77, while BCE fell 2.9 percent to C$22.35.

Gildan, the top net loser, fell 34 percent to C$11.73 after the T-shirt maker posted sharply lower quarterly profit and provided a disappointing 2009 outlook. [ID:nBNG119073] The consumer discretionary group fell 3.2 percent.

"I think the Gildan numbers were a shock to people and the stock is off," said Paul Hand, managing director at RBC Capital Markets.

Shortly before 10:30 a.m., the S&P/TSX composite index .GSPTSE was up 31.72 points, or 0.37 percent, at 8,665.72 with four of its 10 main groups higher.   Continued...