May 16, 2011 / 2:52 PM / 7 years ago

CANADA STOCKS-TSX gains on gold miners, new TMX bid

 * TSX climbs 0.6 percent to 13,456.29
 * Rise in three biggest groups offset six down sectors
 * TMX jumps but below offer price after bank-led LSE bid
 (Adds details)
 By Ka Yan Ng
 TORONTO, May 16 (Reuters) - Toronto's main stock index was
higher on Monday morning on strength in gold miners, while
financial shares were boosted by news of a new homegrown
takeover bid for Toronto Stock Exchange-operator TMX Group
 Gold-mining shares rose with gold prices, which turned
higher as the euro recovered ground. Barrick Gold ABX.TO and
Goldcorp G.TO both gained more than 2 percent, while the
index's global gold subgroup advanced 1.8 percent.
 Along with gold miners, other constituents of the index's
materials group, up 1.9 percent, were also higher. Diversified
miner Teck Resources TCKb.TO rose 1.1 percent to C$45.34, and
fertilizer producer Potash Corp POT.TO was up 2.24 percent at
 "The commodities have had such a rout. I don't know if this
is partly short-covering," said Ian Nakamoto, director of
research at MacDougall, MacDougall & MacTier, noting the
economic landscape is still very fragile.
 "But short-covering is different than coming in and buying
long...on these commodity stocks. Unless you have a particular
story, it could still be a tough slug through the end of
 At 10:23 a.m. (1423 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was 79.13 points, or 0.6
percent, higher at 13,456.29, after falling at the open.
 Six of the index's 10 main groups were lower, but its three
heavyweight groups -- materials, energy, and financials -- were
all up.
 Financials, which make up about a third of the index's
weighting, put up a modest advance of 0.6 percent, lifted by
news over the weekend that a Canadian group has proposed a
rival offer for the operator of the Toronto Stock Exchange.
 The new offer is higher than the London Stock Exchange's
LSE.L competing bid for TMX Group. TMX shares rose 6.9
percent to C$44.62, but were below the C$48 a share bid
proposed by the Canadian bank and pension fund consortium.
 Toronto-Dominion Bank TD.TO gained 0.6 percent to
C$82.20, while Bank of Nova Scotia BNS.TO climbed 0.85
percent to C$57.94.
 Nakamoto said financials may be on the rise based on
expectations of solid quarterly results to be reported shortly
by Canadian banks.
 ($1=$0.97 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)

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