August 11, 2011 / 3:22 PM / 8 years ago

CANADA STOCKS-TSX up in choppy trade, oils offset weak golds

 * TSX up 51.96 points, or 0.43 percent, at 12,250.85
 * Index volatile, claws back from 1 percent drop
 * Energy leads way higher, but golds main drag
 * Manulife rises as results tops estimates
 * Open Text drops 17 pct as results miss, targets cut  (Recasts. Adds analyst comment, details)
 By Ka Yan Ng
 TORONTO, Aug 11 (Reuters) - Toronto’s main stock market index edged higher on Thursday as a rebound by energy shares on the back of stronger oil prices offset pressure from falling gold miners.
 After the index dropped to a near one-year low earlier in the week, investors tentatively stepped back into most sectors.
 “Markets are trying to stabilize here,” said Youssef Zohny, portfolio manager at Van Arbor Asset Management. “You’re seeing increased volatility but markets have seen a fairly steep correction so there’s definitely an attempt to pick up some bargains as well.”
 At 10:53 a.m. (1450 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 51.96 points, or 0.43 percent, at 12,250.85, clawing back from a 1 percent drop earlier. Eight of the index’s 10 main groups were higher.
 Potash Corp POT.TO topped all influential advancers, up 4.69 percent to C$53.59, while Encana (ECA.TO) jumped 3.8 percent to C$25.35. Rogers Communications (RCIb.TO) gained 4.5 percent to C$37.10.
 Energy shares were a strong advancer, up more than 1 percent, as U.S. oil futures bounced. But gold-mining shares followed the price of gold lower, putting pressure on the materials group, which lost more than 1 percent.
 Spot gold XAU= touched an all-time peak of $1,813.79, before easing, though remained supported by investor anxiety that major economies are in deep trouble. [GOL/] [MET/L]
 Goldcorp (G.TO) led decliners, down 3.5 percent to C$48.77, with three other gold miners among the top five overall drags.
 Commodities remained under pressure, with investors unwilling to take long-term bets in markets that have whip-sawed for weeks on escalating debt crises and concerns about global growth in the United States and Europe.
 Zohny said there was a tug of war between firmer earnings results and better-than-expected U.S. jobless claims data against a backdrop of jitters about the health of the euro zone banking system.
 Manulife Financial (MFC.TO) topped estimates and rebounded from a year-earlier loss, as the insurer cut losses associated with weak financial markets. Its shares rose 1.2 percent to C$12.65, reclaiming some lost ground from Wednesday when it was the most influential decliner. [ID:nN1E77914S]
 Other financials were also on the rise, though mildly, as concerns resurfaced about the euro zone banking system and signs of funding stress. The sector was up 0.34 percent.
 Open Text OTC.TO dropped nearly 17 percent to C$48, and was the chief weight in the infotech group, which lost 3.5 percent. At least three analysts cut their price targets on the business software company, the day after it reported a rise in quarterly adjusted profit, but missed estimates. [ID:nN1E7791HI][RCH/CA]  (Editing by Jeffrey Hodgson)                  

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