CANADA STOCKS-Data, earnings push TSX higher, drive energy gains

Thu Aug 1, 2013 5:14pm EDT

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* TSX rises 107.32 points, or 0.86 percent, to 12,593.96
    * Eight of 10 main index sectors advance
    * Suncor gains after results, has biggest influence on
market
    * Barrick, Enbridge jump after quarterly reports

    By John Tilak
    TORONTO, Aug 1 (Reuters) - Canada's main stock index climbed
on Thursday after a burst of data from China, Europe and the
United States showed the global economic recovery was
strengthening, boosting the price of oil and fueling a rally in
shares of energy producers.
    Investors also digested a wave of quarterly results, from
industry bellwethers such as Suncor Energy Inc, Barrick
Gold Corp and Enbridge Inc.
    U.S. crude oil prices jumped more than 2.5 percent, driven
by supply problems in Africa and the Iraq as well as the news on
the global economy. 
    The gains in energy shares follow a recent narrowing of the
discount between the price of heavy Western Canada Select oil
produced by many of the region's companies and the lighter West
Texas Intermediate benchmark.
    "Investors are having more confidence in energy," said
Robert McWhirter, president and portfolio manager at Selective
Asset Management. "Now that the spread has narrowed, people are
convinced that oil companies are going to make some decent
money." 
    An industry report showed that the pace of growth in the
U.S. manufacturing sector accelerated in July to the highest
level in two years as new orders surged, supporting the view the
economy will pick up in the second half of the year.
 
    Separate data indicated the euro zone was slowly starting to
emerge from recession, while business surveys showed China's
manufacturing sector was stabilizing.
    The improving global economic outlook lifted commodity
prices and boosted investor sentiment in the resource-sensitive
Canadian market.
    Also on Thursday, the European Central Bank said it would
not tighten monetary policy until well into next year, a day
after the U.S. Federal Reserve said it will maintain the pace of
its bond-buying program for now.  
    Investors relished the combination of positive economic data
and a lack of indication of imminent central bank policy
tightening.
    "It looks like we might be into a Goldilocks-type scenario,
where the economy is starting to do better, but not so well that
it pushes the central banks to tighten," said Colin Cieszynski,
senior market analyst at CMC Markets Canada.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 107.32 points, or 0.86 percent, at
12,593.96. 
    Eight of the 10 main sectors on the index were higher.
    Shares of energy producers shot up 2.3 percent, benefiting
from earnings reports and higher oil prices.
    Suncor posted a second-quarter profit that missed analyst
expectations by a penny, reflecting factors including the
precautionary shutdown of third-party pipelines due to flooding
in northern Alberta. Shares of Suncor, Canada's largest energy
company, climbed 3.9 percent to C$33.74 and were the biggest
positive influence on the market. 
    Enbridge Inc, Canada's largest pipeline company,
reported a 12 percent rise in second-quarter adjusted profit due
to higher contracted volumes, lifting its shares 1.3 percent to
C$46.18. 
    Shares of Bombardier Inc fell slightly to C$4.95
after the aircraft and train maker reported a 22 percent rise in
second-quarter profit as its train business grew, but pushed
back the date when its new C-Series plane will be ready for
delivery. 
    Barrick reported stronger-than-expected quarterly results,
sending its shares up 2.7 percent even as it recorded an $8.7
billion impairment charge and cut its dividend by 75 percent.
 
    Shares of Catamaran Corp were up 9.1 percent at
C$59.03 after the pharmacy benefit manager said it would buy
privately held Restat LLC for $409.5 million to expand its
client base.
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