CANADA STOCKS-TSX at 2-wk high on euro zone hopes, energy leads

Thu Jul 21, 2011 11:08am EDT
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 * TSX up 95.69 points, or 0.7 pct, at 13,436.52
 * Nine of 10 sectors stronger
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, July 21 (Reuters) - Toronto's main stock market
index hit a two-week high on Thursday after draft EU summit
conclusions eased anxiety about the European debt crisis, while
positive U.S. earnings and data further encouraged investors.
 Energy stocks, boosted by rising oil prices, played the
biggest role in leading the market higher.
 Suncor Energy SU.TO added 0.9 percent to C$38.69. Encana
Corp ECA.TO firmed 1.7 percent to C$30.34 after the natural
gas producer posted a second-quarter profit and said it expects
to meet its full-year cash flow target. [nL3E7IL24C]
 South of the border, earnings results from Morgan Stanley
lifted optimism over the battered banking sector, lifting
Canadian financials 0.9 percent. [.N]
 Toronto-Dominion Bank TD.TO was the third most
influential climber, gaining 1.3 percent to C$80.23, while
Royal Bank of Canada RY.TO rose 0.8 percent to C$53.96.
 Stocks also benefited as draft EU summit conclusions eased
anxiety about the European debt crisis. The euro zone bailout
fund, the EFSF, will provide loans to Greece, Ireland and
Portugal at a lower interest rate and for longer maturities,
according to the draft seen by Reuters. [ID:nB5E7HN032]
 "It looks like this may be one way of working out some kind
of deal acceptable to all the parties, so that has helped to
set a more positive tone to the market," said Bob Gorman, chief
portfolio strategist at TD Waterhouse.
 Gorman pointed also pointed to a significant rebound in
factory activity in the U.S. Mid-Atlantic region. [nN1E76K0MA]
  At 10:28 a.m. (1428 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 95.69 points, or 0.7
percent, at 13,436.52. Nine of the 10 sectors were stronger.
 It rose as high as 13,451.94, its strongest level since
July 7.
 "You've got a pretty significant series of positive numbers
here, both on the macro-economic side and in the company
specific level which has pretty much fit into our thesis about
pretty firm fundamentals," added Gorman.
 Loblaw Cos L.TO, Canada's No. 1 grocery chain, edged up
0.3 percent to C$38.44, after posting a higher quarterly
profit. [nN1E76J1M8]
 Healthcare stocks surged 2.1 percent, on deal news in the
sector in the United States.
 (Editing by Jeffrey Hodgson)