CANADA STOCKS-TSX steady as Spain bailout talk lifts oils, banks

Tue Nov 13, 2012 12:34pm EST

* TSX rises 6.52 points, or 0.05 percent, to 12,197.98
    * Energy, bank shares rise on Spain bailout speculation
    * Shoppers Drug Mart up 3 percent on results
    * Index hit two-month low earlier in the day

    By John Tilak
    TORONTO, Nov 13 (Reuters) - Canada's main stock index was
trading steady at midday on Tuesday, snapping back from early
losses, as energy and some financial stocks rose on speculation
that Spain may be close to asking for a sovereign bailout,
offsetting continuing U.S. fiscal concerns.
    The energy sector was up 0.11 percent, and financials were
up 0.04 percent. Stocks that helped lead the market higher
included Royal Bank of Canada, up 0.72 percent at
C$56.31, and Talisman Energy Inc, which rose 3.14
percent to C$11.51.
    The Canadian market was influenced by stock market rises in
Europe and the United States. European shares erased losses on a
fresh round of trader speculation that Spain may be close to
asking for a sovereign bailout, and U.S. stocks turned higher on
strong results from home improvement retailer Home Depot. 
    Concern over whether U.S. politicians would be able to reach
a deal to tackle the "fiscal cliff", which threatens to push the
economy into recession, continued to dampen sentiment, however,
as did a new controversy over Greece's debt crisis. 
    "These are going to be the prevalent risks hanging over the
market, not just today, or this week, but the balance of the
year, if not longer," said Craig Fehr, Canadian market
strategist at Edward Jones in St. Louis, Missouri.
    "And by and large, the markets are going to be in a
wait-and-see mode is as we progress towards the end of the
year."
    At midday, the Toronto Stock Exchange's S&P/TSX composite
index was up 6.52 points, or 0.05 percent, at
12,197.98. Earlier in the session, the index hit 12,124.35, its
lowest point since Sept. 6.
     Shares of Shoppers Drug Mart Corp rose 2.87 percent
to C$42.34 after the pharmacy chain reported higher quarterly
sales.
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