June 9, 2011 / 3:14 PM / 6 years ago

CANADA STOCKS-TSX up slightly after 7-day decline

* TSX up 34.83 points, 0.3 pct, at 13,218.62

* Six of 10 sectors higher (Updates with details, commentary)

By Claire Sibonney

TORONTO, June 9 (Reuters) - Toronto’s main stock index pushed higher on Thursday morning, with investor sentiment getting a boost from rallying commodity prices and some decent economic signals following a seven-day selloff.

Better than expected U.S. trade data offset disappointing U.S. jobless claims and Canadian trade data.

Resource shares led the advance, with materials up 1 percent and the energy group up 0.3 percent as oil U.S. crude futures and gold prices marched higher. [O/R] [GOL/]

Corn futures Cc1 also hit a record high, sending fertilizer companies up sharply.

Potash Corp (POT.TO) was the most influential gainer on the index, jumping 3.2 percent to C$53.87, while Agrium Inc (AGU.TO) rose 2.6 percent to C$82.46.

“We’re very oversold technically,” said Paul Gardner, partner and portfolio manager at Avenue Investment Management.

“I think we’re still in a bearish market but in a trading market, so I think there will be bargain-hunters trying to buy but there will be pressure probably going into the summer,” Gardner said, noting that volume was quite thin.

He said investors may also be feeling less worried about Europe’s sovereign debt woes as the European Central Bank appears to be warming to the idea of having private bond holders sharing the burden of rescuing Greece.

At 10:33 a.m. (1433 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 34.83 points, or 0.3 percent, at 13,218.62. Six of the 10 main sectors were higher.

Bank stocks, down 0.4 percent, were the heaviest drags on the index. Royal Bank of Canada (RY.TO) slipped 0.6 percent to C$54.06, while Toronto-Dominion Bank (TD.TO) fell 0.6 percent to C$79.01.

Sino-Forest TRE.TO rose for a second day, gaining 12 percent to C$5.50, lifted by speculative buying and short-covering after a short-seller’s damning report that has crushed the Chinese forest plantation company’s stock. [ID:nN08210464]

Looking ahead, Gardner said that, at best, the market is likely to trade sideways through the slow summer season and at worst it may see another 5 to 10 percent correction.

$1=$0.98 Canadian Reporting by Claire Sibonney; editing by Rob Wilson

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