CANADA STOCKS-TSX rises as commodities show strength

Wed Jan 12, 2011 4:59pm EST
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   *TSX rises 0.44 percent to 13,460.21
 *Materials and energy rise, but golds lag
 *Takeover target Consolidated Thompson Iron up 30 pct
 (Updates to close)
 By Ka Yan Ng
 TORONTO, Jan 12 (Reuters) - Toronto's main stock index rose
for a second straight session on Wednesday to its highest close
in a week, encouraged by rising commodity prices and by a
Portuguese bond sale that soothed jitters over European
sovereign debt.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 59.16 points, or 0.44 percent, at
13,460.21. Seven of the index's 10 main groups were higher,
supported by a 0.93 percent rise in the materials sector, and a
0.64 percent advance in oil and gas.
 "Commodities are all on the green side, whether it's the
base side of it like copper, or precious metals, or energy,"
said Francis Campeau, broker at MF Global Canada in Montreal.
 Nexen Inc NXY.TO added 4.6 percent to C$24.07, while
EnCana (ECA.TO: Quote) gained 1.8 percent to C$29.22, spurred by oil
prices that jumped to a 27-month high above $91 a barrel on an
accelerated tightening of supply following production shutdowns
in several oil markets. [O/R]
 The materials group was paced by blue chips such as
fertilizer producer Potash Corp (POT.TO: Quote), which was up 2.66
percent at C$167.29, and Teck Resources <TCKb.TO, up 1.79
percent at C$64.24.
 Base-metals miners were the sector's main source of
strength, gaining on prospects for stronger demand from China
for metals such as copper.
 While the price of gold recovered from an early retreat,
gold-mining issues were among lagging resource stocks, and
Campeau said this helped prevent the main Toronto index driving
higher and reaching the multi-month highs that other indexes
achieved on Wednesday.
 European stocks hit a 28-month closing high, lifted by
speculation that the European Union will bolster the region's
debt rescue fund, while U.S. stock indexes were also higher on
speculation that the U.S. economy will strengthen. [MKTS/GLOB]
 Markets also drew strength from the solid demand shown at
Portugal's 10-year bond auction, though fragile European debt
markets still need to consider auctions in Spain and Italy this
 "There was certainly concern about the refinancing of
Portuguese bonds and that seems to be alleviated now and looks
like it's out of the way, at least temporarily," said John
Kinsey, portfolio manager at Caldwell Securities Ltd.
 Consolidated Thompson Iron Mines CLM.TO shares surged
29.67 percent to C$17.35 after U.S.-based Cliffs Natural
Resources said late on Tuesday that it will buy the Canadian
miner for C$5.07 billion ($4.1 billion). [ID:nN11154500]
 Trendy yoga-wear company Lululemon Athletica LLL.TO
shares jumped more than 8 percent to C$71.94 after it forecast
higher-than-expected quarterly results. [ID:nN12189447]
 ($1=$0.99 Canadian)
 (Reporting by Ka Yan Ng and Solarina Ho; editing by Peter