CANADA STOCKS-TSX rises as banks and miners rally

Tue Mar 23, 2010 4:54pm EDT
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* TSX rises 0.65 percent to 12,044.54

* Financial, mining issues leading the way

By Claire Sibonney

TORONTO, March 23 (Reuters) - Toronto's main stock index was higher for a second straight session on Tuesday, led by a rally in financial and mining shares that lifted the index back over the 12,000 mark.

The index's mining subsector was up 2.3 percent, after Quadra Mining's QUA.TO C$1.54 billion ($1.51 billion) bid to buy FNX Mining Co FNX.TO spurred excitement about the potential for new mergers and acquisitions.

Base metals major Teck Resources TCKb.TO rose 2.5 percent to C$41.55. FNX also gained almost 2 percent to C$15.14, while Quadra lost 2.3 percent to C$16.98.

Canadian copper miner Quadra said it planned to buy FNX Mining in an all stock deal, creating a mid-sized base metals company with assets in Canada, the United States and Chile. [ID:nSGE62M0FF]

"We expect more deals to happen. Companies have seen a nice recovery in their stocks so they're going to be able to use that as currency to make acquisitions," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services.

"And in the meantime commodity prices have been higher so the companies' balance sheets are starting to improve."   Continued...