January 21, 2016 / 3:59 PM / in 2 years

CANADA STOCKS-TSX rises as energy stocks bounce

(Updates prices)

* TSX up 29.38 points, or 0.25 percent, at 11,872.49.

* Seven of the TSX’s 10 main groups were higher

TORONTO, Jan 21 (Reuters) - Canada’s main stock index gained in morning trade on Thursday as energy stocks rebounded from a recent slump even as crude oil prices sat near 12-year lows.

Banks also rose, while miners and railways weighed.

At 10:32 a.m. EST (1532 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 29.38 points, or 0.25 percent, at 11,872.49. Seven of its 10 main groups were higher.

The index hit its lowest level since August 2012 on Wednesday.

Depressed crude oil prices have weighed on the resource-linked market, including fears that Canadian banks will take a hit to profit in 2016, as more corporate loans sour, oil and gas capital raising dries up and job losses take a toll on banks’ consumer arms.

The most influential drags on Thursday were the railways, with Canadian Pacific Railway Ltd falling 4.4 percent to C$144.52 after it missed profit expectations on lower freight volumes.

Canadian National Railway Co declined 3.3 percent to C$66.79.

The energy group climbed 2.3 percent, while the financials group gained 0.7 percent.

Royal Bank of Canada advanced 0.8 percent to C$66.11 after British insurer Aviva said it would buy RBC’s general insurance arm for C$582 million ($403 million)..

Gold miners and fertilizer companies also weighed, with bullion lower on a weaker euro and skittish investors wary of a possible global slowdown.

Barrick Gold Corp declined 3.8 percent to C$11.34 and Goldcorp Inc lost 4.4 percent to C$13.69.

Potash Corp fell 1.7 percent to C$23.17 and Agrium Inc slipped 0.9 percent to C$124.25.

Bombardier fell 3.3 percent to C$1.16 after United Airlines agreed to buy 40 small planes from Boeing Co, a blow for the Canadian plane and train maker, which has sought a major customer to give momentum to its fledgling CSeries jets.

Reporting by Alastair Sharp Editing by W Simon

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