REFILE-CANADA STOCKS-TSX edges higher as resource shares rebound

Wed Nov 17, 2010 3:10pm EST
 
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 (Delete extraneous number 12 from paragraph 7)
 * TSX up 34.52 points at 12,636.75
 * Energy, materials lead TSX higher
 * Potash firms after announcing $2 bln stock buyback
 (Adds details, quotes)
 By Jennifer Kwan
 TORONTO, Nov 17 (Reuters) - Toronto's main stock index
bounced higher on Wednesday morning after a weak start, boosted
by a turnaround in commodity-linked issues.
 The market had opened lower as resources faltered on fears
that China would increase interest rates to fight inflation,
raising concerns of a drop in Chinese demand for commodities.
[ID:nSGE6AG08D]
 But the resource sectors regained their footing, with the
energy and materials groups up 0.1 percent and 1.5 percent,
respectively, as investors digested an announcement by China on
Wednesday that was less draconian than anticipated, said Rick
Meslin, head of Canadian equities at UBS.
 "For the last few days, the market was fearing what might
be serious monetary tightening... But now people are sort of
sifting through what this means," said Meslin.
 "They didn't move to tighten rates, but there are certain
types of restrictions that are likely."
 As well, gold futures steadied, in part after U.S. data
showed that an increase in October's year-on-year core consumer
price index was the smallest on record, and as housing starts
fell to their lowest level in 1-1/2 years. [GOL/]
 At 10:26 a.m. (1526 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 34.52 points, or 0.27
percent, to 12,636.75. Two of the main index's groups were
higher.
 Movers on the upside included Barrick Gold (ABX.TO: Quote), up 1.5
percent at C$50.73, and Cameco Corp (CCO.TO: Quote), which climbed 2
percent to C$34.98. Teck Resources TCKb.TO rose 2 percent to
C$49.10.
 Meslin said investors were also cautiously optimistic as
they awaited more clarity on how a European Union-IMF mission
would help ease Ireland's debt crisis.
 Ireland has agreed to work with the mission to shore up its
banking sector, a process that could lead to a bailout, despite
Dublin's deep reluctance. [ID:nLDE6AG004]
 Nervousness over global economic worries showed up as
weakness in TSX financials. Royal Bank of Canada (RY.TO: Quote) was
down 0.6 percent at C$52.78, while Bank of Nova Scotia (BNS.TO: Quote)
fell 0.4 percent to C$52.44. Toronto-Dominion Bank (TD.TO: Quote) slid
0.6 percent to C$72.39.
 Potash Corp (POT.TO: Quote) rose 0.2 percent to C$138.43 after the
fertilizer maker announced plans for a stock buyback worth up
to $2 billion. [ID:nN16156346]
 ($1=$1.02 Canadian)
 (Reporting by Jennifer Kwan; editing by Rob Wilson)