CANADA STOCKS-TSX higher for second day on miners, financials

Tue May 17, 2011 5:32pm EDT
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   * TSX up 49.71 points, or 0.37 percent, at 13,441.06
 * Four of the 10 main groups end higher
 (Updates with details, comments)
 By Solarina Ho
 TORONTO, May 17 (Reuters) - Toronto's main stock index
finished higher on Tuesday, extending Monday's gains, lifted by
strength in mining and financial issues.
 The overall materials sector was up 0.91 percent, while the
mining subgroup was ahead 1.28 percent. Fertilizer giant Potash
Corp POT.TO led the way with a 2.65 percent rise to C$52.31,
helped by a 3 percent jump in U.S. wheat and corn futures, as
harsh weather slowed planting and damaged crops.
 Diversified miner Teck Resources TCKb.TO jumped 3.43
percent to C$46.74, despite a retreat by copper prices. Copper
closed lower for the first time in four sessions, weighed down
by a firmer greenback and disappointing economic data. [MET/L]
 "We've seen in the last few weeks quite a bit of volatility
in the commodities space," said Youssef Zohny, a portfolio
manager with Van Arbor Asset Management.
 "The fact that commodity prices are consolidating and
stabilizing a bit is definitely putting more confidence in
equities and you're starting to see some investors pick up some
shares after last week's correction."
 The influential financial sector saw a 0.65 percent gain,
with all six big banks finishing higher. Toronto-Dominion Bank
TD.TO led the way with a 1.34 percent rise to C$83.34, while
Bank of Nova Scotia BNS.TO was up 0.95 percent at C$58.16.
 "We're just getting a little bit of sector rotation," said
Bruce Latimer, a trader at Dundee Securities.
 "We're just seeing some money go out of (precious metals)
and going into the financials and others."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished up 49.71 points, or 0.37 percent, at
13,441.06, but only four of its 10 main groups were higher. The
index, which had slid for the previous three weeks, extended
Monday's modest 0.11 percent gain.
 "We've seen a fairly decent correction, we got some bargain
hunters coming into the market," said Zohny.
 Telecoms and tech issues were the only other gainers,
rising 1 percent and 0.06 percent respectively.
 Research In Motion RIM.TO was ahead 1.87 percent at
C$42.50. Prior to Tuesday's rise, the BlackBerry maker had seen
its shares tumble nearly 30 percent this year.
 "That stock's been heavily oversold for the last few days
and weeks and months. So I think some people are trying to do
some bottom-fishing on it," said Latimer.
 Energy stocks, which gyrated widely between positive and
negative territory earlier in the session, finished down 0.05
percent. The swings mirrored choppy oil prices, as a batch of
disappointing data fueled worries about the economy. [O/R]
 Penn West Petroleum PWT.TO was off 0.85 percent at
C$27.94 while Imperial Oil IMO.TO rose 0.76 percent to
 Energy companies could remain in focus as wildfires rage
through northern Alberta and could cut Canadian oil production
further over the next few days. [ID:nN1724114]
 In individual company news, TMX Group X.TO shares were
off 1.54 percent at C$43.37 after rising more than 5 percent in
the previous session.
 Investors continued to debate possible scenarios
surrounding the operator of the Toronto Stock Exchange,
following news that some of Canada's biggest banks and pension
funds had challenged London Stock Exchange LSE.L with a rival
takeover proposal. [ID:nLDE74G1L7] [ID:nN17142333]
 AbitibiBowater ABH.TO shares slumped 5.66 percent to
C$24.00 after the newsprint maker posted disappointing
first-quarter profit. [ID:nL4E7GH1YD]
 Transforce TFI.TO shares rose 2.6 percent to C$15.40
after the trucking firm said higher freight shipping rates
would boost profits this year. [ID:nL4E7GH2NO]
 ($1=$0.97 Canadian)