CANADA STOCKS-TSX rises on China relief, gains for 3rd day

Mon Dec 13, 2010 4:39pm EST
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   *TSX closes up 56.39 points, or 0.4 pct, at 13,295.86
   *Energy, materials, financials all stronger
 (Updates to close, adds details, comments)
 By Claire Sibonney
 TORONTO, Dec 13 (Reuters) - Toronto's main stock index
advanced for a third straight session on Monday as resource
issues rallied with commodity prices on relief that China did
not raise interest rates despite soaring inflation.
 Oil reached above $89 a barrel, while copper hit record
highs, boosted by economic prospects for China. The rising
commodity prices lifted the index's powerhouse energy sector up
1 percent and its materials group up 0.2 percent. [O/R]
 The gold subsector was also higher, up 0.5 percent, as the
price of bullion firmed toward $1,400 an ounce on the back of a
weaker U.S. dollar. [GOL/]
 Key gainers included Suncor Energy (SU.TO: Quote), up 1.2 percent
at C$36.63, Barrick Gold (ABX.TO: Quote), up 0.9 percent at C$54.32,
and Ivanhoe Mines IVN.TO, which jumped 2 percent to C$24.73.
 Beside stronger metal prices, Ivanhoe also benefited from
its board approving a $2.3 billion capital outlay in 2011 to
develop the first phase of its massive Oyu Tolgoi copper and
gold project in southern Mongolia. [ID:nN13275249]
 "Some of the (economic) numbers out of China were good and
they didn't raise the bank rates so that gave the market a bit
of a relief," said John Kinsey, portfolio manager at Caldwell
 Data over the weekend showed that China's inflation rose
past expectations to a 28-month high in November.
 China's central bank extended an increase in reserve
requirements for top banks over the weekend rather than raising
benchmark interest rates, easing concerns that aggressive
tightening could slow expansion in one of the major growth
engines of the global economy. [ID:nLDE6BC0ET]
 "The commodities, when they're doing well, we seem to do
well, especially if the financials join in," Kinsey said of the
index's rise.
 The S&P/TSX composite index .GSPTSE closed up 56.39
points, or 0.43 percent, at 13,295.86, with six of its 10 main
sectors higher, including heavyweight financials, up 0.5
 Sun Life Financial (SLF.TO: Quote) advanced 2.2 percent to
C$30.18, joining in the recent run-up in insurance companies as
their profit picture was made brighter by rising interest rates
and higher stock markets.
 While the big six banks were all firmer, Royal Bank of
Canada (RY.TO: Quote) lagged, only 0.1 percent higher at C$52.82 after
Moody's Investors Service downgraded its debt due to concerns
over its increased focus on capital markets. [ID:nN13204362]
 In other individual company news, gold royalty company
Franco-Nevada (FNV.TO: Quote) tumbled 3.8 percent to C$32.15 after
announcing it will buy competitor Gold Wheaton GLW.TO --
which surged almost 14 percent to C$4.99 -- in a deal worth
C$830 million. [ID:nN13196905]
 Research In Motion RIM.TO dropped 2.3 percent to C$61.25
after Exane BNP Paribas cut its rating on the BlackBerry maker
to "neutral" from "outperform". [ID:nWNAB8405]
   ($1=$1.01 Canadian)
 (Editing by Peter Galloway)