May 10, 2013 / 9:20 PM / 6 years ago

CANADA STOCKS-Magna and Bombardier drive TSX higher

* TSX rises 45.19 points, or 0.36 percent, to 12,589.09
    * Eight of 10 main index sectors advance
    * Magna jumps after results
    * Chorus Aviation tumbles after dividend cut, results

    By Cameron French
    TORONTO, May 10 (Reuters) - Canada's main stock index pushed
higher on Friday as strong energy issues and surging shares of
manufacturers Magna International and Bombardier Inc
 helped extend the index's three-week run of gains.
    Auto parts maker Magna provided the index with its biggest
single boost, jumping 3.6 percent to C$65.46 after reporting a
higher-than-expected rise in first-quarter profit.
    Also rallying was plane and train manufacturer Bombardier,
which gained 5.1 percent to C$4.71 a day after the company
reported a 25 percent jump in quarterly revenue and said its
CSeries jetliner was on track to make its first flight in June.
    All told, the Toronto Stock Exchange's S&P/TSX composite
index rose 45.19 points, or 0.36 percent, to
12,589.09, continuing a three-week run of gains driven by signs
of a U.S. economic rebound that should at some point spill into
    "Investors are looking more at risk appetite coming back,
and for evidence you just have to look at what's happening south
of the border," said Elvis Picardo, strategist and vice
president of research at Global Securities in Vancouver.
    Both the S&P 500 and Dow Jones Industrial Index
 notched record high closes on Friday, helped by the
combination of accommodative monetary policy and recent steady
economic data.
    "I think the feeling is that that's possibly going to pull
the TSX along for a little bit," Picardo added.
    Eight of the 10 TSX subgroups rose, with Magna leading a 1
percent rise in consumer discretionary stocks.
     The heavily weighted energy group rose 0.4 percent despite
a drop in oil and natural gas prices. In the group, Encana Corp
 climbed 2.8 percent to C$19.32, while Precision
Drilling gained 1.5 percent to C$8.34.
    Data showing that in April the Canadian economy recovered
some of the jobs lost in a big employment drop in March,
appeared to have little impact on trading. 
    Among individual stocks, Chorus Aviation Inc sank
21 percent to C$2.89, making it the weakest performer on the
index, after the contract carrier cut its dividend in half amid
an ongoing cost dispute with Air Canada.
    The recent strength of the TSX has been at odds with typical
seasonal weakness around this time, but Picardo said the index
could continue to push higher if U.S. markets do the same.
    "I think there have been so many people who have been
bracing themselves for a pullback, that the longer it doesn't
happen the more people jump back into the markets," he said.
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