CANADA STOCKS-TSX ends higher as resource issues advance

Mon May 30, 2011 4:44pm EDT
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   * TSX up 32.07 points, or 0.23 percent, at 13,829.66
 * Seven of the 10 main groups higher
 (Updates with details, comments)
 By Solarina Ho
 TORONTO, May 30 (Reuters) - Toronto's main stock index
drifted higher on Monday, as energy and materials issues
advanced in muted trade.
 Energy stocks led the way, rising 0.68 percent, with
Canadian Natural Resources CNQ.TO gaining 1.28 percent to
C$42.09 and Suncor Energy SU.TO up 0.59 percent at C$44.99.
The two issues were the most influential gainers and accounted
for 0.06 percent of the index's 0.23 percent rise.
 The materials group, which combined with the energy group
make up nearly 50 percent of the index, climbed 0.53 percent.
It was powered by fertilizer giant Potash Corp POT.TO, which
rose 0.8 percent to C$55.13. Diversified miner Teck Resources
TCKb.TO was also an influential gainer, rising 1.31 percent
to C$50.98.
 Equinox Minerals EQN.TO, which saw hefty declines on
Friday after news that Zambia gave the green light for Barrick
Gold ABX.TO to take over the copper producer, rebounded 4.47
percent to C$7.94.
 Uranium producers, however, were under pressure after
Germany said it plans to shut all its nuclear reactors by 2022,
a policy reversal drawn up in a rush after the Fukushima
nuclear disaster in Japan. [nN30251640]
 Cameco Corp CCO.TO was the most influential decliner,
dropping 3.32 percent to C$27.36, while Uranium One Inc
UUU.TO fell 2.63 percent to C$3.70.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished the session up 32.07 points, or 0.23
percent, at 13,829.66. Seven of the 10 main groups were in
positive territory.
 The index popped higher toward the close after spending
much of the afternoon languishing near the unchanged mark.
Trade was quiet with both U.S. and UK markets closed for
 Most of Canada's biggest banks ended the session lower,
dragging the financial index down 0.06 percent.
 Royal Bank of Canada RY.TO and Toronto-Dominion Bank
TD.TO were among the most influential movers on the downside,
with Royal slipping 0.45 percent to C$57.10 and TD off 0.36
percent at C$83.24.
 The slide continued a recent retreat by financial issues
following weaker than expected earnings and expectations the
banks are heading into a tougher part of the business cycle as
tighter lending rules and the prospect of higher interest rates
depress consumer borrowing. [ID:nN26238530]
 "Investors have been accustomed to regular earnings ...
where Canadian banks beat earnings estimates with monotonous
regularity," said Elvis Picardo, analyst and strategist at
Global Securities.
 "It's unusual to find two or three banks missing estimates
in the same week, so there's certainly seems to be some
lingering disappointment on that front."
 ($1=$0.98 Canadian)
 (Editing by Rob Wilson)