* TSX climbs 0.3 percent to 13,839.49
* Nine of 10 main sectors rise, led by resources
* Uranium producers fall as Germany eyes nuclear exit
* Utilities drawn lower by Fortis
* First-quarter GDP strongest in a year (Adds details)
TORONTO , May 30 (Reuters) - Toronto’s main stock index rose on Monday morning, helped by a modest advance in commodity issues, though trading was muted.
Materials led the way higher, up 0.6 percent, buoyed by steady commodity prices. Fertilizer giant Potash Corp (POT.TO) rose 1.12 percent to C$55.30, while Barrick Gold (ABX.TO) rose 0.3 percent to C$46.50.
Uranium producers, however, were under pressure after Germany said it wants to shut all its nuclear reactors by 2022, a policy reversal drawn up in a rush after the Fukushima disaster in Japan. [ID:nLDE74T0GY]
Cameco Corp CCO.TO dropped 2.9 percent to C$27.47, while Uranium One Inc UUU.TO fell 2.1 percent to C$3.72.
At 10:20 a.m. (1420 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 41.90 points, or 0.3 percent, at 13,839.49, after an initial dip at the open. Nine of the index’s 10 main groups were higher. The blue-chip S&P/TSX60 index was up 0.3 percent.
After hitting a two-month low more than two weeks ago, the index has since recovered about 4 percent.
“We’re continuing the recent trend where Canada has been strong over the last roughly two weeks. Despite flat commodities, each sector of the S&P/60 is slightly up,” said Francis Campeau, broker at MF Global Canada, in Montreal. “But we’re talking very low volumes.”
Analysts said trading desks were thinly staffed, and predicted volume may be lighter than usual given that U.S. and British financial markets were closed on Monday.
Fortis Inc (FTS.TO) was one of the notable decliners on the TSX, pulling the utilities group down 0.9 percent. The largest investor-owned distribution utility in Canada dropped 2.2 percent to C$32.93, after the company said it has agreed to buy a Vermont utility for US$470 million, plus debt, and announced a C$300 million bought deal offering. [ID:nN30231534] [ID:nASA028H2]
Early sentiment was buoyed by data that showed Canada’s economy gathered speed in the first quarter, expanding at its fastest pace in a year as businesses ramped up investment and rebuilt inventories. However, economists warned the growth spurt would not last long. [ID:nN30235278]
$1=$0.98 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson