August 15, 2011 / 2:47 PM / 8 years ago

CANADA STOCKS-TSX climbs in broad rally, golds slip

 *TSX rises 157.63 points, or 1.3 pct, to 12,700
 *All 10 sectors higher, gold sub-sector falls  (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Aug 15 (Reuters) - Toronto’s main stock market index rose more than 1 percent on Monday morning, driven by bargain-hunting, signs of recovery in Japan and U.S. acquisition news.
 Energy shares climbed 2.2 percent as oil prices jumped more than $1 a barrel on a broad rebound in risk appetite. Among them, Suncor Energy (SU.TO) rose 2.3 percent to C$32.61, and Canadian Natural Resources (CNQ.TO) added 2.4 percent to C$37.20.
 “Calmer heads have prevailed,” Bruce Latimer, trader at Dundee Securities, said of the market action following last week’s roller-coaster rise. “People are ... sifting through the carnage and just trying to see which names they feel offer some value, some deep-value investing.”
 Helping to boost confidence and commodity prices, data showed the Japanese economy shrank much less than expected in the second quarter as companies made strides in restoring output after the earthquake in March. [nL3E7JF00H]
 Markets also brightened up on Google Inc’s (GOOG.O) offer to buy Motorola Mobility for about $12.5 billion in cash, though investors were still wary after the wild market swings of last week and nagging worries over euro zone politics.  [nL3E7JF1LD] [MKTS/GLOB]
 At 10:22 a.m. (1422 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 157.63 points, or 1.3 percent, at 12,700. All of the index’s 10 sectors were stronger, including financials, up 1.4 percent, as Manulife Financial (MFC.TO) surged 4.2 percent to C$13.73.
 Toronto-Dominion Bank (TD.TO) also rallied, up 1.4 percent at C$77.01, after announcing a deal to buy MBNA Canada’s credit card business. [nASA02OL6]
 Among tech stocks, Research In Motion RIM.TO was up 3.2 percent to C$25.07, after Verizon Wireless introduced the new BlackBerry Bold smartphone. [nWNAB9587]
 Gold-mining shares were down 0.3 percent, as bullion prices eased for a third straight session. [GOL/]
 Among the most heavily weighted decliners, Barrick Gold (ABX.TO) lost 0.3 percent to C$48.98, and Goldcorp Inc (G.TO) dropped 0.2 percent to C$49.38.
 “That’s obviously where the money went last week, was into the golds, so it’s sort of coming out of the golds and being spread across the sectors,” Latimer said. “But I think we’re just going to have some interesting days ahead of us and people just trying to trade the market one day at a time.”
 ($1=$0.99 Canadian)  (Reporting by Claire Sibonney; editing by Peter Galloway)                                        

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