CANADA STOCKS-Natural resource shares push TSX to moderate gain

Tue Nov 19, 2013 11:19am EST

* TSX rises 27.51 points, or 0.20 percent, to 13,485.57
    * Six of the 10 main index sectors advance
    * Bombardier climbs 1.5 percent after signing CSeries deal

    By John Tilak
    TORONTO, Nov 19 (Reuters) - Canada's main stock index
climbed to a moderate gain on Tuesday, boosted by its energy and
materials sectors as investors brushed aside concerns that the
recent rally might have been overdone.
    The Toronto stock market's benchmark index, which is up more
than 8 percent this year, hit a two-year high in the previous
session. 
    With market focus glued on U.S. Federal Reserve monetary
policy and China's plans for social and economic reform, some
investors have started to question whether the gains made by
global stock markets are sustainable.
    Billionaire Carl Icahn said on Monday he is "very cautious"
on the stock market, saying he could see a "big drop" because
earnings at many companies are fueled more by low borrowing
costs than by the strength of management. 
    "The reality is we've had a very strong month or so of very
good returns," said John Stephenson, senior vice president at
First Asset Investment Management, who said he sees little cause
for concern about the Canadian market. 
    The earnings beat on the TSX in the most recent quarter has
been much cleaner than the beat on the S&P 500, he said. 
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 27.51 points, or 0.20 percent, at 13,485.57.
    The benchmark Canadian index is up about 5.3 percent in the
quarter to date.
    Stephenson said Canada will benefit from strong global
demand: "As a smaller market that's geared to global growth as
opposed to domestic growth, the TSX should do very well next
year."
    Six of the 10 main sectors on the index were higher on
Tuesday.
    A gain in the price of U.S. crude oil helped push shares of
energy companies up 0.6 percent. Canadian Natural Resources Ltd
 climbed 0.7 percent to C$33.87, and Encana Corp jumped
1.9 percent to C$19.90.
    The materials sector, which includes mining stocks, gained
0.4 percent. Goldcorp Inc was up 1.1 percent at C$25.47,
and Barrick Gold Corp rose 0.7 percent to C$18.55.
    Financials advanced 0.2 percent, with Manulife Financial
Corp adding 1.4 percent and having the biggest positive
influence on the market.
    In company news, Bombardier Inc said it signed a
letter of intent to sell five CSeries jetliners to Iraqi
Airways. Bombardier shares gained 1.5 percent to
C$4.72.
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