CANADA STOCKS-TSX advances on commodities, U.S. earnings

Fri Jan 21, 2011 10:51am EST
 
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 *TSX up  50.76 points at 13,382.08
 *Six of 10 sectors stronger
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Jan 21 (Reuters) - Toronto's main stock index rose
on Friday morning with strong U.S. earnings boosting investor
morale and base-metal mining, energy and financial shares all
firmer.
  After falling more than 2 percent on Thursday, the price
of copper edged higher as the U.S. dollar fell on Friday,
sending base-metal miners up 0.8 percent. [MET/L]
 First Quantum Minerals FM.TO rose 0.8 percent to C$113.23
and Inmet Mining IMN.TO jumped 1.6 percent to C$77.47.
 Energy shares were also higher, up 0.9 percent despite a
slip in oil prices. [O/R] Suncor Energy SU.TO advanced almost
1 percent to C$38.03, while Canadian Natural Resources CNQ.TO
gained 0.6 percent to C$42.31.
 "We're seeing some strength out of oil and gas and basic
materials, which were quite weak this week overall," said
Youssef Zohny, associate portfolio manager at Van Arbor Asset
Management in Vancouver. "But today we're seeing some broad
(U.S.) dollar weakness via the euro and other currencies so
that could be giving a little optimism that commodity prices
have stabilized a bit."
  Stronger U.S. stock markets also provided a lift. General
Electric GE.N reported better-than-expected earnings, while
Google Inc's GOOG.O fourth-quarter net revenues surpassed
consensus. [.N]
  At 10:21 a.m. (1521 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 50.76 points, or 0.4
percent, at 13,382.08. Six of the index's 10 main groups were
higher, including financials, up 0.1 percent.
 Zohny cautioned that an options expiration on Friday could
spur volatility later in the day.
 He said that next week focus will shift towards a U.S.
Federal Reserve meeting and U.S. President Barack Obama's State
of the Union address.
 Potash Corp POT.TO rose 1.6 percent to C$163.79 after
potash marketing company Canpotex Ltd signed a deal with
China's Sinofert Holdings Ltd to supply 600,000 tons of potash
during the first six months of 2011.
 While Canpotex, the overseas potash marketing arm of Potash
Corp, Mosaic MOS.N and Agrium AGU.TO, did not specify the
price, it suggested it is similar to recently established
prices for new seaborne imports of potash to China.
[ID:nSGE70J0DN] Agrium rallied almost 2 percent to C$88.98.
 Canadian health sciences company Nordion Inc NDN.TO
surged nearly 11 percent to C$11.18 after reporting a fourth
quarter profit from continuing operations on Thursday.
[ID:nN20154930]
 ($1=$0.99 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)