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.

Also in focus but largely shrugged off by the market was the collapse of the leveraged buyout of BCE Inc BCE.TO 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...