CANADA STOCKS-TSX edges up as higher oil offsets gold losses

Wed Nov 16, 2011 1:44pm EST
 
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 * TSX up 32.41 pts, or 0.3 pct, at 12,261.68
 * Energy sector gains as oil rises above $100
 * Gold miners drag on lower bullion prices
 * Europe debt contagion fears weigh
 (Adds details)
 By Jon Cook
 TORONTO, Nov 16 (Reuters) - Canadian stocks rose in choppy
trade on Wednesday as gains in energy shares on higher oil
prices offset falling gold miners and broad market fears that
Europe's debt crisis is spreading.
 U.S. oil rose to $101.52, its highest level since June,
supported in part by some unexpectedly strong U.S. economic
data and by Enbridge Inc's  (ENB.TO: Quote) plan to reverse the Seaway
pipeline by next year to help ease an oil glut at the Cushing,
Oklahoma, delivery hub. [ID:nL5E7MG28R]  [ID:nN1E7AF0ES] [O/R]
 "Oil at $100 tells us that the market's not looking towards
a recession," said Irwin Michael, a portfolio manager at ABC
Funds.
 The index's energy sector took the lead, rising 1.7
percent. Canadian Natural Resources (CNQ.TO: Quote) led the group's
gains, jumping 4.3 percent to C$39.12.
 TransCanada Corp (TRP.TO: Quote) shares climbed 0.3 percent to
C$40.90 after the energy infrastructure company said it could
start building the southern portion of the Keystone XL pipeline
even as it awaits U.S. approval for the project as a whole.
[ID:nN1E7AF0TA]
 Enbridge stock rose 1.1 percent to C$35.20 after purchasing
ConocoPhillips stake in the 350,000 barrel per day Seaway
pipeline for $1.15 billion, and saying it will reverse the
line's flow. [ID:nN1E7AF0BQ]
 Gold-mining stocks fell 0.4 percent as bullion had its
largest one-day drop this month. [GOL/]
 Barrick Gold (ABX.TO: Quote) was the biggest drag, falling 0.6
percent to C$53.11. Minefinders Corp's MFL.TO shares plunged
more than 10 percent to C$12.45 after downgrades.
 Bucking gold miners' downward trend, shares of Novagold
(NG.TO: Quote) rose 27 percent to C$11.43 after the company said it is
exploring a possible sale of its 50 percent stake in the big
Galore Creek copper/gold project in northwestern British
Columbia. [ID:nN1E7AF0JS]
 Though widely viewed as a safe-haven, gold has recently
traded in line with headlines from Europe and was down with
fears the European debt crisis was broadening and could engulf
the economies of Austria, the Netherlands and France.
[MKTS/GLOB]
 At midday, the Toronto Stock Exchange's S&P/TSX composite
index .GSPTSE was up 32.41 points, or 0.3 percent, at
12,261.68, after touching a session low of 12,163.35 shortly
after the open.
 The index's gains were limited by a a new wave of European
fears as the European Central Bank's buying of Italian and
Spanish bonds failed to stem a broader euro zone bond selloff.
 Investors feared Europe's debt contagion had spread to
France, as yield premiums on the country's 10-year government
bond over German bunds hit euro-era highs. [ID:nL5E7MG0ZG]
 Nearly all of Canada's top 10 main sectors were negative,
with gold mining stocks leading the heavily weighted materials
sector to a 0.3 percent drop.
 The telecommunications sector, a traditional safe haven,
was down nearly 1 percent, a day after Canada's communications
regulator allowed big Internet service providers to charge
lease fees based on the amount of capacity small providers use.
[ID:nN1E7AE1O5]
 BCE Inc (BCE.TO: Quote) was among the sector's biggest losers,
falling 0.3 percent to C$39.55, after the telecoms regulator
rejected its bid to be allowed to charge wholesalers for
Internet services on a volume basis, also known as usage-based
billing.
 In other company news, Research In Motion's RIM.TO shares
were up more than 1 percent at $19.86 after Goldman Sachs
raised the rating on the BlackBerry maker.
 ($1=$1.02 Canadian)
  (Editing by Jeffrey Hodgson and Peter Galloway)