CANADA STOCKS-TSX little changed; energy, CP Rail gains outweigh gold fall

Wed Dec 5, 2012 11:37am EST

* TSX up 2.63 points, or 0.02 percent, at 12,139.81
    * Seven of the 10 main sectors advance
    * Energy sector rises 0.7 percent

    By John Tilak
    TORONTO, Dec 5 (Reuters) - Canada's main stock index was
little changed on Wednesday as a rise in energy stocks,
triggered by higher oil prices, and a jump in Canadian Pacific
Railway Ltd following news of job cuts offset a decline
in the materials sector.
    The market was also supported by positive comments on
economic policy and growth that came from a top Chinese leader.
 
    "The market is having an adjustment after a sloppy run,"
said Fred Ketchen, director of equity trading at Scotia McLeod,
of the recent uptick.
    "We are in a range. I don't see anything to cause the market
to burst out with a run of enthusiasm," he added.
    At midmorning, the Toronto Stock Exchange's S&P/TSX
composite index was up 2.63 points, or 0.02 percent,
at 12,139.81. Seven of the 10 main sectors were trading higher.
    Energy shares rose 0.7 percent, tracking higher oil prices.
Suncor Energy was up 0.7 percent at C$32.47, and Nexen
Inc rose 1.6 percent to $24.55. Brent crude oil rose to
just above $110 per barrel. 
    Canadian Pacific Railway Ltd gained 3.6 percent to
C$96.32 after the country's second-biggest rail carrier said
late Tuesday it would cut 4,500 jobs by 2016 as part of a drive
by its new CEO to slash costs. The company played the biggest
role of any single stock in leading the market higher.
 
    "This is what shareholders have been looking for. This is
what they have been hoping - that CP will face the challenges
that they have. The new CEO is making his mark," Ketchen said.
    Also boosting the market was Primaris Retail REIT
, whose shares rose 13.7 percent after a consortium
led by Canada's KingSett Capital offered about C$2.6 billion
($2.62 billion) to acquire the Canadian shopping mall owner.
 
    However, the market was held back by falling gold mining
stocks, which were hurt by lower gold prices. 
    Goldcorp Inc shed 2 percent to C$37.04, Barrick Gold
Corp fell 1.7 percent to C$33.38, and Eldorado Gold
 was down 3.8 percent at C$13.35. As a result, the
materials sector, which includes mining stocks, fell 0.9
percent.
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