CANADA STOCKS-TSX rises on higher oil, brighter metals view

Thu Aug 20, 2009 10:46am EDT
 
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 * TSX up 0.56 percent, at 10,746.20
 * Commodity prices support materials, oil and gas groups
 * Bombardier falls 4.1 percent on canceled order
 (Adds details)
 TORONTO, Aug 20 (Reuters) - Toronto's main stock index rose
on Thursday morning, gaining support from resource-based stocks
as oil and some metals prices firmed.
 Oil prices tipped towards $73 a barrel, after rising more
than 4 percent in the previous session, while copper and other
metals gained as miner Rio Tinto issued an upbeat outlook on
metals demand.
 Gold was slightly lower, but shares of gold miners were
higher with the rest of the TSX index's materials group, which
led the index's rise with a 1.2 percent gain. Energy shares
were up 0.3 percent.
 Gold miner Goldcorp G.TO rose 1.04 percent to C$38.74,
while fertilizer producer Potash Corp POT.TO was up 1.3
percent at C$105.80. Miner Teck Resources TCKb.TO climbed 2.3
percent to C$28.30, and oil company EnCana ECA.TO was up 1
percent at C$57.38.
 The top heavyweight decliner was Bombardier BBDb.TO,
which fell 4.1 percent to C$3.97 after it ended a large Learjet
contract with Jet Republic after the upstart private aviation
company declared insolvency. [ID:nN20509344]  That weighed on
the index's industrials group, which slipped 0.4 percent.
 The financial sector rose 0.6 percent ahead of quarterly
results from Canada's big banks next week. Royal Bank of Canada
RY.TO, the index's top heavyweight advancer, was up 1.5
percent at C$51.36.
 At 10:20 a.m. (1420 GMT), the S&P/TSX composite index
.GSPTSE was up 59.37 points, or 0.56 percent, at 10,746.20.
Six of its 10 main groups were higher.
 "So far today it's kind of lackluster," said Francis
Campeau, a broker at MF Global Canada in Montreal.
 "China has been the underlying story. But it's been a bit
of a nonevent morning...we've traded a very small range. Volume
is extremely light."
 The TSX has been volatile this week on seesawing appetite
for risk, largely taking direction from Chinese stock markets,
which havee become a barometer for confidence in the strength
of the recovery.
 But the TSX has also shown some resilience. On Wednesday it
was able to claw back from a big drop at the open to finish in
positive territory.
 In the United States, the latest weekly jobless claims
figures suggested a stalled job market and fanned fears that
the recovery would be anemic, which initially weighed on market
sentiment. [ID:nN20510281]
 ($1=$1.10 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)