CANADA STOCKS-TSX tipped higher by rise in oil, bank shares

Wed Jul 20, 2011 5:20pm EDT
 
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 *TSX edges up 0.06 percent to 13,340.83
 * Three biggest sectors keep index in positive territory
 * RIM falls to lowest level in about 5 yrs
 * Nexen up as China's CNOOC to buy Opti Canada
 (Updates to close)
 By Ka Yan Ng
 TORONTO, July 20 (Reuters) - Toronto's main stock market
index closed slightly higher on Wednesday as weakness in
industrials was offset by stronger energy and banking shares.
 The index's three biggest groups -- energy, financials, and
materials -- all advanced, and their mild gains were enough to
prop up the index for a second straight daily rise.
 All three groups were represented among the most heavily
weighted climbers. Royal Bank of Canada RY.TO, up 0.94
percent at C$53.56, led all influential gainers. Barrick Gold
ABX.TO rose 1.08 percent to C$46.71, followed by Encana
ECA.TO, which added 1.29 percent to C$29.83.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 7.91 points, or 0.06 percent, at 13,340.83.
Six of its 10 main sectors were lower, led by a 1 percent
decline in the industrials group, while telecoms slid 0.94
percent. The infotech group was unchanged on the day.
 "We've been accustomed to markets that can change their
mind in a hurry," said Fred Ketchen, director of equity trading
at ScotiaMcLeod. He said sector rotation was one reason behind
the sharp declines in some sectors.
 The political battle over increasing the U.S. debt ceiling
as well as the worries about sovereign debt problems in Europe
have been a drag on stocks.
 European Union leaders must find a convincing solution to
Greece's debt crisis at a summit on Thursday or the global
economy will pay the price, the head of the European Commission
said in an unusually somber warning. [ID:nL6E7IK1QO]
 In individual company news, Nexen Inc NXY.TO was up 1.93
percent at C$23.21 after China's top offshore oil producer,
CNOOC Ltd 0883.HK, said it would buy Opti Canada Inc
OPC.TO, which owns a 35 percent interest in Nexen's
struggling Long Lake oils sands project in northern Alberta.
[ID:nL3E7IK12D]
 Nexen owns the remaining 65 percent stake, and is now seen
having a stronger partner, said Youssef Zohny, portfolio
manager at Van Arbor Asset Management in Vancouver.
 Shareholders will receive 12 U.S. cents a share in cash,
compared with Opti Canada's last traded price of C$0.115 a
share. Opti stock has not traded since July 12 and has tumbled
from a peak of C$25.40 in mid-2008. 
 Canadian National Railway was the most notable decliner,
falling 1.28 percent to C$73.53 after it was cut to "market
perform" from "outperform" by Raymond James.
 Research In Motion RIM.TO was dented by news that a
senior product manager for RIM's PlayBook quit and as main
rival Apple unveiled blockbuster quarterly results. RIM shares
fell to their lowest point in about five years at C$24.31
before paring losses. The stock closed down 0.71 percent at
C$25.26. [ID:nN1E76J100]
 ($1=$0.95 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)