CANADA STOCKS-TSX gains as resource shares rebound

Thu Sep 11, 2014 4:32pm EDT
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* TSX ends up 62.43 points, or 0.40 percent, at 15,534.32
    * All 10 main index sectors gain
    * BlackBerry climbs after announcing acquisition

 (Adds portfolio manager comment, updates prices to close)
    By John Tilak and Alastair Sharp
    TORONTO, Sept 11 (Reuters) - Canada's main stock index rose
on Thursday as energy producers and other resource stocks
bounced back from a recent slide despite lingering weakness in
the price of underlying commodities.
    Major gold miners gained even as bullion neared a
three-month low, while BlackBerry jumped 6 percent to
C$11.91 after saying it would buy a small tech company that
enables a single device to use multiple phone numbers.
    Financial stocks, which along with resource names provide
the bulk of the index's valuation, also pushed higher.
    "We're seeing some reversals from earlier this week. The
precious metals and materials sectors got a bit oversold," said
Youssef Zohny, a portfolio manager at Stenner Investment
Partners of Richardson GMP.
    The energy sector has been pressured by the slipping price
of oil in the last three months. Brent crude hit a
two-year low on Thursday due to concerns over rising supply and
sluggish demand, while U.S. oil bounced. 
    "Most commodities sold off on the recent dollar strength,"
Zohny said. "What we're seeing today is a bit of a bounce. So
that's helping the TSX."
    The Toronto Stock Exchange's S&P/TSX composite index
 ended the day up 62.43 points, or 0.40 percent, at
15,534.32. All 10 main sectors on the index closed higher.
    Investors also digested data indicating the number of
Americans filing new claims for unemployment benefits
unexpectedly rose last week. 
    The market is taking "a wait-and-see approach," said Kevin
Headland, a director in the portfolio advisory group at Manulife
Asset Management.
    "There's a lot of uncertainty coming to the end of the year
as we end QE3 and look towards an increase in interest rates,"
he said, referring to the U.S. Federal Reserve's quantitative
easing program.
    He said the TSX may not be able to sustain the pace at which
it has been rising this year. The benchmark index is up more
than 13 percent since the start of 2014.
    Financials, the index's most heavily weighted sector,
advanced 0.3 percent. Royal Bank of Canada climbed 0.8
percent to C$81.86, and Bank of Nova Scotia added 0.6
percent to C$72.76.
    Shares of energy producers added 0.2 percent, with Canadian
Natural Resources Ltd gaining 1.5 percent to $45.33.
    Goldcorp Inc moved 1.6 percent higher to C$28.06 and
Barrick Gold Corp rose 1.7 percent to C$18.63, to help
the materials sector gain 1.3 percent on the day.

 (Editing by James Dalgleish)