August 13, 2008 / 5:43 PM / 11 years ago

UPDATE 2-Toronto stocks get lift from commodity prices

(Updates to early afternoon)

*TSX index pulled higher by rising commodity prices

*Broader market falls on worries over U.S. economy

*Gildan slumps after quarterly results

TORONTO, Aug 13 (Reuters) - The Toronto Stock Exchange’s main index climbed 1 percent on Wednesday as resource shares bounded higher with commodity prices, eclipsing declines in financial and consumer stocks.

The price of oil rose more than $3 after a U.S. government report showed a decline in fuel inventories. The gain boosted Bay Street’s energy sector, with Canadian Natural Resources (CNQ.TO) rising 5 percent.

Gold producers and other miners also helped lift the TSX index as prices for gold and other metals rose. Agnico-Eagle Mines (AEM.TO) gained 7.9 percent.

But the broader market remained under the water line, dragged down by worries over consumer sentiment and the outlook for the U.S. economy after U.S. retail sales edged lower in July, as expected.

The large financial sector fell with Canadian Imperial Bank of Commerce (CM.TO) among the laggards, losing 3.3 percent.

The S&P/TSX composite index .GSPTSE was up 141.10 points, or 1.07 percent, at 13,308.10 with just three of its 10 main sectors pushing higher.

Gildan Activewear (GIL.TO) was among the biggest net losers after it said third-quarter profit rose slightly as a better product mix helped offset restructuring charges, but excluding charges, adjusted net earnings slipped. The T-shirt maker was down C$2.58, or 8.8 percent, at C$26.91.

Gildan helped take the consumer discretionary sector down 2.3 percent.

The small health sector gave up 3.6 percent as it was weighed by a decline in Biovail BVF.TO after it posted a loss due to the cost of shutting down manufacturing plants in Puerto Rico and an R&D facility in Ireland.

Biovail, Canada’s biggest publicly traded drugmaker, was down 33 Canadian cents, or 3.1 percent, at C$10.17.

Also in the sector, Cardiome Pharma COM.TO slid C$1.01, or 10.1 percent, to C$8.95 after the company reported a bigger second-quarter loss that missed the Street’s expectations.

The financial sector was down 2.2 percent, while CIBC fell C$2.01 to C$59.90, and Toronto-Dominion Bank (TD.TO) was off C$1.51, or 2.4 percent, to C$61.36.

The energy and materials sectors climbed 3.8 percent and 5.8 percent, respectively. Canadian Natural rose C$3.97 to C$82.85, and Agnico-Eagle gained C$4.10 to C$56.02.

Shares of Cameco (CCO.TO) bucked the trend, falling after news of further flooding at its big Cigar Lake mine project raised expectations of more production delays. Cameco was down C$1.26, or 3.7 percent, at C$32.79. ($1=$1.06 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)

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