CANADA STOCKS-TSX climbs as commodity prices steady

Thu Jun 18, 2009 10:28am EDT
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* TSX up 0.32 percent at 10,098.10

* Energy, materials firm as commodity prices steady (Adds details, quote)

By Jennifer Kwan

TORONTO, June 18 (Reuters) - Toronto's main stock index rose on Thursday morning after a choppy start, boosted by heavily weighted resource issues as commodity prices pared earlier losses.

The TSX index's energy sector was up 0.8 percent, with oil and gas producer EnCana Corp ECA.TO rising 1.6 percent to C$57.89. The mining-heavy materials group rose 0.6 percent, with Barrick Gold ABX.TO climbing 1.5 percent to C$38.30.

Financials, up 0.8 percent, also offered some support, with Royal Bank of Canada RY.TO up 1 percent at C$44.45.

The TSX index's rise follows four days of decline as the market retreated after rising 40 percent from its early March lows.

It would not be surprising to see some further pullbacks but they will be "quite modest", said Vincent Delisle, strategist at Scotia Capital, in Montreal.

"This is an exhausted, overbought market because we had a great runup since early March," he said. "We treat it as a technical correction, not a dramatic reversal from the improvement in fundamentals."

At 10:10 a.m. (1410 GMT), the S&P/TSX composite index .GSPTSE was up 31.99 points, or 0.32 percent, at 10,098.10. Seven of its 10 main groups were higher.

($1=$1.13 Canadian) (Reporting by Jennifer Kwan; editing by Peter Galloway)