December 11, 2008 / 3:54 PM / 10 years ago

CANADA STOCKS-TSX gets boost from resources, Gildan weighs

* Energy, materials lifted by higher oil, gold

* Gildan sinks 34 pct after results, ‘09 guidance

* BCE falls 2.9 pct as buyout collapses (Adds quote, details)

TORONTO, Dec 11 (Reuters) - Toronto’s main stock index rose on Thursday morning as strength in commodity issues offset a slump in the consumer discretionary sector, which was pulled lower by weak quarterly earnings and guidance from Gildan Activewear Inc (GIL.TO).

Also in focus but largely shrugged off by the market was the collapse of the leveraged buyout of BCE Inc (BCE.TO) and uncertainty over the fate of the bailout of the U.S. auto industry.

Heavily weighted stocks that saw action included Barrick Gold (ABX.TO), up 3.3 percent at C$39.77, while BCE fell 2.9 percent to C$22.35.

Gildan, the top net loser, fell 34 percent to C$11.73 after the T-shirt maker posted sharply lower quarterly profit and provided a disappointing 2009 outlook. [ID:nBNG119073] The consumer discretionary group fell 3.2 percent.

“I think the Gildan numbers were a shock to people and the stock is off,” said Paul Hand, managing director at RBC Capital Markets.

Shortly before 10:30 a.m., the S&P/TSX composite index .GSPTSE was up 31.72 points, or 0.37 percent, at 8,665.72 with four of its 10 main groups higher.

The big energy sector rose 2.3 percent as oil climbed above $46 a barrel, but individual names were mixed.

EnCana (ECA.TO) slipped 0.3 percent to C$58.98 after it slashed its 2009 capital budget by 18 percent to about $6.1 billion as it looks to weather falling commodity prices and economic uncertainty. [ID:nBNG190957]

Petro-Canada PCA.TO, which rose 2.3 percent to C$29.66, says it expects to cut spending next year by 36 percent as it weathers tumbling oil prices and economic turmoil. [ID:nN10346784]

On Wednesday, Nexen Inc NXY.TO, which has been the subject of recent takeover speculation, said it planned to cut its capital spending next year as it slows work on an oil sands project. [ID:nN10316986] Nexen stock rose 2.9 percent to C$22.35 on Thursday.

The resource-laden materials group was up 2.9 percent.

In focus but having a muted effect on the overall market was Thursday morning’s collapse of the C$34.8 billion leveraged buyout of BCE after the buyers said a key condition for the deal was not met. [ID:nN11358392] ($1=$1.23 Canadian) (Reporting by Jennifer Kwan; editing by Rob Wilson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below