February 26, 2010 / 4:11 PM / 7 years ago

CANADA STOCKS-TSX rises moderately after early seesaw

3 Min Read

* TSX rises 0.2 percent to 11,655.11

* Investors sort through mixed U.S. data (Adds details)

TORONTO, Feb 26 (Reuters) - Toronto's main stock index seesawed on Friday morning before heading higher as investors weighed stronger resource prices against mixed U.S. economic data.

The U.S. economy grew a touch faster than initially thought in the fourth quarter, soothing recent concerns about the strength of the rebound. [ID:nN26169261]

However, economic data that showed the U.S. housing market has not yet fully stabilized and weakening consumer sentiment left investors feeling cautious. [ID:nN26167386] [ID:nN26171094]

"It's a good news, bad news scenario. It's good news that it's recovering, but the bad news is that it's going to be a slow economic recovery. But, the fear of rising rates is just not there," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

Nakamoto said that, while the U.S. Federal Reserve's recent move to hike the discount rate may be a first step to higher interest rates, that second step was still "several miles away."

At 10:45 a.m. (1545 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 23.67 points, or 0.2 percent, at 11,655.11.

Top advancers included Research In Motion RIM.TO, up 1 percent at C$74.75, and Toronto-Dominion Bank (TD.TO), up 0.5 percent at C$67.20. Barrick Gold (ABX.TO) was up 0.55 percent at C$39.91.

Heavyweight decliners included TransCanada (TRP.TO), down 1 percent at C$34.73, while Potash Corp (POT.TO), fell 0.7 percent to C$117.17.

Sovereign debt worries in Greece continue to linger, Nakamoto said, but Canada's wealth in resources such as energy or metals was a strong offsetting factor that should support the TSX.

"Canada is still a great place to invest in. Canada has what the worlds wants, and Canada doesn't have what the world doesn't want." (Reporting by Ka Yan Ng; editing by Rob Wilson)

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