CANADA STOCKS-TSX rises with commodities on China relief

Mon Dec 13, 2010 10:18am EST
 
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 *TSX up 58.09 points, or 0.44 percent, at 13,297.56  
 *Franco-Nevada falls after says to buy Gold Wheaton
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Dec 13 (Reuters) - Toronto's main stock index
climbed on Monday morning as resource issues rose with
commodity prices on upbeat Chinese economic data and on relief
that China's central bank did not raise interest rates.
 Key movers on the upside included Suncor Energy (SU.TO: Quote), up
1 percent at C$38.56, Barrick Gold (ABX.TO: Quote), up 0.7 percent at
C$54.22, and Teck Resources (TCKb.TO: Quote), which rose 1.5 percent
to C$58.48. Resource shares were higher as oil and base-metals
prices got a lift from data over the weekend that showed
China's industrial output topped expectations and inflation
rose to a 28-month high in November. [ID:nBJL002113]
 As well, China's central bank raised lenders' requirements
instead of benchmark interest rates over the weekend, easing
concerns that tighter monetary policy could lead to a slowdown
in the Chinese economy.[ID:nL3E6ND0F6]
 The broad market rally reflected relief that China did not
raise rates, said Francis Campeau, broker at MF Global Canada,
in Montreal.
 "The commodity market pretty much liked that. The whole
commodity play, both copper and crude, is giving the TSX a big
boost," he said.
 At 9:55 a.m. (1455 GMT), the S&P/TSX composite index
.GSPTSE was up 58.09 points, or 0.44 percent, at 13,297.56,
with six of its 10 main sectors higher.
 Gold miners also supported the market as bullion prices
rose above $1,390 an ounce in Europe on Monday in part as the
dollar surrendered early gains against the euro. [GOL/] [FRX/]
Kinross Gold (K.TO: Quote) rose 0.9 percent to C$18.76.
 In company news, gold royalty company Franco-Nevada
(FNV.TO: Quote) said that it will buy competitor Gold Wheaton GLW.TO
in a cash and share deal worth C$830 million. [ID:nN13191321]
 Franco-Nevada, the top net loser on the market, fell 3
percent to C$32.40, while Gold Wheaton, the most heavily traded
stock on the market, soared 14.6 percent to C$5.02.
 ($1=$1.01 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)