CANADA STOCKS-TSX helped by Ukraine and China; Canexus weighs

Wed Sep 3, 2014 4:54pm EDT
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* TSX up 49.94 points, or 0.32 percent, at 15,669.02
    * Index hits another record high on global cues
    * Couche-Tard bounces on unit sale; legal action hurts
    * Eight of the 10 main sectors gain

 (Adds strategist comment, updates prices to close)
    By Alastair Sharp
    TORONTO, Sept 3 (Reuters) - Canada's main stock index
notched a broad but shallow rise on Wednesday, boosted by news
of a ceasefire agreement between Ukraine and Russia and a
rebound in Chinese economic data.
    The index scaled a fresh record, propelled by gains in
banking, industrial and energy stocks as the global outlook
    Convenience store and gas station operator Alimentation
Couche-Tard Inc jumped 6.7 percent to C$35.45 after it
said it had agreed to sell its aviation fuel business.
    Bucking the trend, Canexus Corp shares fell 11.2
percent to C$4.75 after the chemical company said it was suing
MEG Energy Corp for refusing it access to a pipeline.
    "It does seem like this is the latest in a series of
missteps," said Elvis Picardo, a strategist at Global Securities
in Vancouver. "I think there is a degree of frustration among
    "When you have the market at all-time highs and a company
runs into unexpected hurdles, investors are going to sell first
and ask questions later," Picardo said. 
    Analysts at CIBC called the development a "nightmare" in a
note to clients. MEG gained 1.5 percent to C$38.62.
    In China, two surveys showed the services sector rebounded
in August, offsetting factory weakness. Canada's
resource-heavy index is sensitive to positive signs out of
    Despite some confusion, statements from Kiev and Moscow
appeared to indicate progress towards resolution of a festering
conflict that has put Europe on edge. 
    The improved outlook in both China and Europe helped the
TSX, which is sensitive to global growth prospects. 
    "It's a combination of things; Ukraine/Russia definitely
puts a more positive geopolitical environment over Europe, but
the other thing is we had some pretty positive data coming out
of China overnight," said Philip Petursson, from the portfolio
advisory group at Manulife Asset Management.
    The Toronto Stock Exchange's S&P/TSX composite index
 ended the session up 38.55 points, or 0.25 percent, at
15,657.63. It hit 15,685.13 at one point, the latest in a string
of record highs this year as resource stocks bounce.
    Eight of the 10 main sectors moved higher.
    The energy sector has gained roughly 17 percent so
far this year as investors bought into undervalued stocks.
    "For this rally on the cyclical side to continue we need
global growth to kick in," Petursson said.
    He said valuations were still on the low end of fair value
for many oil and gas names, including Suncor Energy Inc,
which was up 1 percent at C$44.11.

 (Editing by Bernadette Baum and Meredith Mazzilli)