CANADA STOCKS-Oils prop up TSX, but 3-week win stretch ends

Fri Jul 15, 2011 5:12pm EDT
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   * TSX up 46.62 points, or 0.35 pct, on Friday at 13,299.54
 * Seven sectors fall, energy and materials prop up index
 * Valeant rises after skincare deals
 * Index falls 0.5 pct on the week, ends 3-week win streak
 (Adds details)
 By Ka Yan Ng
 TORONTO, July 15 (Reuters) - Toronto's main stock index
closed higher on Friday, lifted by solid gains in its
heavyweight resource groups as key commodity prices advanced.
 Oil prices rose on news of new limits on oil shipments on a
Canadian export pipeline and as a European bank stress test
produced positive results, which offset a rash of weak U.S.
economic data. [O/R] [ID:nN1E76E0DF]
 TransCanada Corp (TRP.TO: Quote) said it will cut nominated crude
volumes on its Keystone pipeline to the United States from
Canada by 20 percent next month as it work to maintain the line
following two spills in May. TransCanada rose 1 percent to
 Other top gainers were mostly from the energy and materials
groups. Suncor Energy (SU.TO: Quote) rose 1.09 percent to C$38.01,
while Teck Resources TCKb.TO jumped 2.46 percent to C$49.90.
Talisman Energy TLM.TO advanced 3.1 percent to C$18.61.
 "The underlying strength in the basic commodities is
reflecting the fact that perceptions are not as dark as they
were a day or two ago. So we're seeing a bit of a swing back,"
said Michael Sprung, president of Sprung & Co Investment
 "What the market today is telling you is at least nothing
was too far off of expectations, at least not on the negative
side. And that's almost relief in this kind of environment."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE  finished up 46.62 points, or 0.35 percent, at
13,299.54. The gains were not enough to give the index a fourth
straight week of advances. The index fell 0.5 percent on the
 Seven of its 10 main sectors were lower, but its two big
resource-based groups rose. Oil and gas gained 1.36 percent,
while materials headed up 0.7 percent.
 The TSX rose as high as 13,337.24 during the session,
buoyed by a stronger profit at U.S. bank Citigroup, which
offset persisting fears about U.S. and European debt levels.
 In individual company news, Valeant Pharmaceuticals
(VRX.TO: Quote) was another influential advancing issue, rising 3.74
percent to C$52.49. The specialty drugmaker said it will pay
$345 million to buy the skincare unit of Johnson &
Johnson-owned (JNJ.N: Quote) Janssen Pharmaceuticals.
 The J&J deal follows Valeant's announcement earlier this
week that it would acquire Sanofi's (SASY.PA: Quote) Dermik skincare
business for $425 million.
 Canadian Imperial Bank of Commerce (CM.TO: Quote) slipped 0.66
percent to C$74.13 after it said it will buy a 41 percent stake
in a U.S. asset manager from JPMorgan Chase & Co for $848
million in cash. [ID:nL3E7IF1PD]
 John Kurgan, a senior market strategist at Lind-Waldock,
said his technical studies have indicated the TSX is likely to
push higher from now on.
 "It's had every reason to sell off more. It really hasn't,"
he said. "If we get any resolution to the U.S. debt ceiling ...
I think the stock market can go a lot higher in the States and
in Canada."
 ($1=$0.95 Canadian)
 (Reporting by Ka Yan Ng; editing by Rob Wilson and Peter