CANADA STOCKS-Bargain-hunters help lift TSX to higher close

Fri Feb 12, 2010 5:16pm EST
 
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 * TSX up 34.32 points, or 0.3 pct, at 11,469.81
 * Index closes 2.2 percent higher for the week
 * China's move to tighten bank reserve levels surprises
 (Adds details, quotes)
 By Jennifer Kwan
 TORONTO, Feb 12 (Reuters) - Toronto's main stock index eked
out a gain on Friday as bargain-hunters scooped up stocks seen
as undervalued and the index's heavily weighted resource
sectors trimmed losses brought on by concerns about China's
monetary policy.
 The TSX rebounded late in the session after falling nearly
100 points as China's decision to increase bank reserve
requirements raised worries about the move's impact on global
growth. [ID:nTOE61B069]
 A mix of names topped the list of influential movers on the
upside, including technology bellwether Research In Motion
RIM.TO, up 3.3 percent at C$75.30. Earlier, RBC raised its
rating on the BlackBerry maker to "top pick" from "outperform."
[CA-RCH]
 Royal Bank of Canada RY.TO rose 0.7 percent to C$55.49
and EnCana ECA.TO climbed 1.8 percent at C$33.68.
 "There is a tremendous amount of liquidity or cash on
the sidelines and any time the prices come down they've been
met with this wall of cash," said Bob Gorman, chief portfolio
strategist at TD Waterhouse.
 "I think people are looking for an opportunity to deploy
cash and I think that's part of what's going on."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished up 34.32 points, or 0.3 pct, at 11,469.81,
heading into a long weekend with market holidays in Canada and
the United States on Monday.
 Investors are "reacting in a short-term fashion" to the
China news, said Pavel Begun, managing partner at 3G Capital
Management.
 "That plays into the day-to-day volatility, whereas, in
reality, how they should be looking at it is, they should say
does that change the longer term outlook," said Begun.
 "Regardless of what happens in China over the short term
there are plenty of undervalued companies in the marketplace."
 The rise marked the fourth straight gaining session for the
TSX, which notched its highest close in three weeks. The index
rose 2.2 percent for the week.
 Suncor Energy SU.TO topped the list of downside movers,
dropping 1.2 percent to C$30.85, while Barrick Gold ABX.TO
slipped 0.5 percent to C$38.74, as the China announcement
dragged oil, gold and base metals markets lower. [O/R] [GOL/]
[MET/L]
 Another big name weighing on the market was life insurer
Manulife Financial MFC.TO, down 0.9 percent at C$18.98.
Manulife and Sun Life SLF.TO, which fell 1 percent to
C$30.11, reported disappointing results on Thursday.
 Elsewhere, cable operator Shaw Communications Inc SJRb.TO
agreed to buy a controlling stake in the television business of
debt-swamped Canwest Global Communications Corp CGS.V,
Canada's biggest media company. [ID:nSGE61B0BY] Shaw shares
fell 2.5 percent to C$19.30.
 The blue chip S&P/TSX 60 index .TSE60 closed 1.56 points,
or 0.23 percent, higher at 671.29.
 ($1=$1.05 Canadian)
 (Reporting by Jennifer Kwan; editing by Rob Wilson)