May 16, 2011 / 2:52 PM / in 6 years

CANADA STOCKS-TSX gains on gold miners, new TMX bid

 * TSX climbs 0.6 percent to 13,456.29
 * Rise in three biggest groups offset six down sectors
 * TMX jumps but below offer price after bank-led LSE bid  (Adds details)
 By Ka Yan Ng
 TORONTO, May 16 (Reuters) - Toronto’s main stock index was higher on Monday morning on strength in gold miners, while financial shares were boosted by news of a new homegrown takeover bid for Toronto Stock Exchange-operator TMX Group (X.TO).
 Gold-mining shares rose with gold prices, which turned higher as the euro recovered ground. Barrick Gold (ABX.TO) and Goldcorp (G.TO) both gained more than 2 percent, while the index’s global gold subgroup advanced 1.8 percent.
 Along with gold miners, other constituents of the index’s materials group, up 1.9 percent, were also higher. Diversified miner Teck Resources TCKb.TO rose 1.1 percent to C$45.34, and fertilizer producer Potash Corp (POT.TO) was up 2.24 percent at C$51.04.
 “The commodities have had such a rout. I don’t know if this is partly short-covering,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier, noting the economic landscape is still very fragile.
 “But short-covering is different than coming in and buying long...on these commodity stocks. Unless you have a particular story, it could still be a tough slug through the end of summer.”
 At 10:23 a.m. (1423 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was 79.13 points, or 0.6 percent, higher at 13,456.29, after falling at the open.
 Six of the index’s 10 main groups were lower, but its three heavyweight groups -- materials, energy, and financials -- were all up.
 Financials, which make up about a third of the index’s weighting, put up a modest advance of 0.6 percent, lifted by news over the weekend that a Canadian group has proposed a rival offer for the operator of the Toronto Stock Exchange.
 The new offer is higher than the London Stock Exchange’s (LSE.L) competing bid for TMX Group. TMX shares rose 6.9 percent to C$44.62, but were below the C$48 a share bid proposed by the Canadian bank and pension fund consortium. [ID:nN15301953]
 Toronto-Dominion Bank (TD.TO) gained 0.6 percent to C$82.20, while Bank of Nova Scotia (BNS.TO) climbed 0.85 percent to C$57.94.
 Nakamoto said financials may be on the rise based on expectations of solid quarterly results to be reported shortly by Canadian banks.
 ($1=$0.97 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)                                        

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