CANADA STOCKS-TSX climbs on China data, Potash Corp

Mon Sep 9, 2013 5:13pm EDT
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* TSX rises 33.72 points, or 0.26 percent, to 12,854.64
    * Nine of 10 main index sectors advance
    * Potash surges, has biggest positive influence on market
    * BlackBerry climbs about 6 percent on report of buyout

    By John Tilak
    TORONTO, Sept 9 (Reuters) - Canada's main stock index rose
on Monday after shares of natural resource companies benefited
from positive data out of China, but declines in the price of
gold and oil capped those gains.
    Still, a surge in shares of Potash Corp and
BlackBerry also supported the overall market.
    But fears about military action in Syria and concerns that
the U.S. Federal Reserve might soon begin dialing back its
stimulus measures continued to unnerve investors.
    "It's a muted rally. We really haven't got the lift from the
Chinese export news that one would have expected," said Elvis
Picardo, strategist at Global Securities in Vancouver. "There's
too much uncertainty for investors to jump into volatile groups
like energy and commodities."
    "Investors are hoping that any fallout from the (Syrian)
conflict wouldn't be too severe and it would be contained."
    Data showed Chinese export growth topped expectations in
    Despite the export-focused Canadian market's exposure to the
Chinese economy, a major consumer of commodities, the TSX
underperformed the S&P 500 on Monday.
    The Toronto Stock Exchange's and S&P/TSX composite index
 closed up 33.72 points, or 0.26 percent, at 12,854.64.
    Among the top gainers, fertilizer maker Potash Corp 
added 4.8 percent closing at C$32.90 on market speculation that
a dispute with Russia that split the Belarus potash consortium
may be resolved. In turn, that could herald higher potash
    "The rebound (in Potash Corp) may be a reflection of people
thinking that the Russians may not engage in a price war," said
Gavin Graham, chief strategy officer at Integris Pension
Management Corp.
    Meanwhile, BlackBerry climbed 5.9 percent following
a report that investor, Fairfax Financial, was closing
in on a rescue deal for the smartphone maker. 
    Nine of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, climbed
0.5 percent, with gains in Potash offsetting a drop in gold
    Goldcorp Inc lost 1.2 percent to C$30.19, and
Eldorado Gold Corp gave back 4.3 percent to C$8.39.  
    After a bid by Gabriel Resources Ltd to open
Europe's biggest open-cast gold mine in Romania looked set to be
rejected due to mounting opposition, shares of the miner slumped
by around 54 percent to 68 Canadian cents. 
    Shares of energy companies added 0.3 percent. Suncor Energy
Inc rose 0.3 percent to C$36.79.
    Financials, the index's most heavily weighted sector, gained
0.1 percent. Toronto-Dominion Bank was up 0.2 percent at
C$91.36, and Sun Life Financial Inc added 0.4 percent
to C$33.12.
    BlackBerry advanced to C$11.96, pushing the information
technology sector up 1.4 percent.
    In other company news, Oncolytics Biotech Inc said
its cancer drug Reolysin reduced the size of tumors in 92
percent of lung cancer patients in a mid-stage trial. The stock
jumped 12 percent to C$3.09.