CANADA STOCKS-TSX flat as soft gold offsets stronger US data

Thu Sep 30, 2010 10:48am EDT
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 *TSX down 10.29 points at 12,372.53
 *Five of 10 sectors weaker
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, Sept 30 (Reuters) - Toronto's main stock index
tread water on Thursday morning, after hitting its highest
level in two years the day before, as rising commodity prices
and bullish U.S. data were undermined by declining gold miners
and volatility on the last day of the third quarter.
 The upbeat U.S. economic news pulled prices for safe-haven
gold off record highs, sending the index's precious metal
miners down 2 percent. Barrick Gold Corp ABX.TO, the world's
No. 1 gold producer, fell 2.8 percent to C$47.19.
 New U.S. claims for jobless benefits fell last week,
pointing to a modest strengthening in the labor market, while
second-quarter U.S. growth was revised a touch higher on firmer
consumer spending. U.S. Midwest business activity also beat
 Oil prices rose after the U.S. data offered hope for a
pick-up in economic activity in the world's largest economy,
sending energy shares up 0.4 percent. Suncor Energy SU.TO
gained 0.3 percent to C$33.30.
 Economically sensitive base-metal miners and financials
also rose. Teck Resources TCKb.TO advanced 1.1 percent to
C$42.41, and Royal Bank of Canada RY.TO added 0.5 percent to
 "This goes on record right now as one of the better
Septembers we've had in North American equity markets, whether
it's Toronto or New York," said Bruce Latimer, a trader at
Dundee Securities.
 Latimer warned that trading could be volatile through
Thursday as fund managers and large institutional investors
take profits or reposition their portfolios on the last day of
the month and the third quarter.
 "It's certainly a positive and bullish feeling but I think
people are being cautious as we move higher because there's
just no rush to jump into the equity market," he said.
  At 10:29 a.m. (1429 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 10.29 points, or
0.08 percent, at 12,372.53. Five of the index's 10 sectors were
weaker. On Wednesday, the index closed at 12,382.82, its
highest level since September 2008.
 Potash Corp POT.TO slipped 1.2 percent to C$148.48 after
sources said China's top chemicals company, Sinochem, is
working hard to come up with a challenge to BHP's $39 billion
bid for the world's largest fertilizer maker, but that efforts
to secure a Russian partner have failed. [ID:nSGE68T015]
 Bombardier Inc BBDb.TO rose 1.4 percent to C$5.02, after
announcing said it will proceed with plans to expand its Global
family of large business aircraft and will unveil details next
month. [ID:nN30151869]
  ($1=$1.03 Canadian)
 (Editing by Peter Galloway)