November 27, 2013 / 10:03 PM / 7 years ago

CANADA STOCKS-TSX edges higher on U.S. data, German deal

* TSX rises 12.29 points, or 0.09 percent, to 13,362.06
    * Seven of the 10 main index sectors advance
    * Tim Hortons little changed after setting debt offering
    * Energy stocks drop with oil price

    By John Tilak
    TORONTO, Nov 27 (Reuters) - Canada's main stock index gained
on Wednesday after U.S. economic data and a German political
deal to form a coalition government supported sentiment,
offsetting a decline in shares of energy producers.
    The rise marked a moderate recovery from the previous
session, when the Toronto stock market's benchmark index had its
sharpest one-day drop in more than two months.
    Global equity markets cheered on Wednesday as German
Chancellor Angela Merkel clinched a coalition deal with the
Social Democrats about two months after emerging victorious in
the country's general election. 
    Stock markets also got support from data that showed the
number of Americans filing new claims for unemployment benefits
fell unexpectedly last week. 
    Investors appear to be becoming less sensitive to
speculation about U.S. Federal Reserve's monetary policy moves,
and are reacting instead to fundamentals, said Marcus Xu,
president and portfolio manager at MY Capital Management. 
    Xu also noted that investors have been pulling out of
commodity stocks. "The money has to go somewhere in Canada," he
added. "So investors have been buying traditional sectors like
industrials, healthcare and consumer."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 12.29 points, or 0.09 percent, at 13,362.06.
It is up about 8 percent this year.
    Seven of the 10 main sectors on the index were higher on
    The industrial group gained 0.5 percent with Canadian
National Railway Co advancing 1 percent to C$118.61,
and Canadian Pacific Railway Ltd rising 1 percent to
    Shares of healthcare companies climbed 0.8 percent. In the
group, Valeant Pharmaceuticals International was up 0.5
percent at C$114.75.
    Gold producers jumped 1.2 percent, with Barrick Gold Corp
 adding 0.6 percent to C$17.34, and Goldcorp Inc 
rising 0.6 percent to C$23.64.
    With the U.S. crude oil price declining, shares of energy
companies slipped 0.3 percent. Enbridge Inc gave back
2.3 percent to C$43.71 and Suncor Energy Inc lost 0.1
percent to C$36.55.
    In corporate news, coffee and doughnut chain Tim Hortons Inc
 said it is selling about C$450 million ($426.9 million)
in senior unsecured 10-year notes as part of a plan to fund a
previously announced share buyback. The stock was little changed
at C$61.57.
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