CANADA STOCKS-TSX touches two-week high after jobs data

Fri Feb 7, 2014 4:28pm EST

* TSX rises 73.10 points, or 0.53 percent, to 13,786.50
    * Seven of the 10 main index sectors advance
    * Baytex Energy drops after acquisition move
    * Dorel tumbles after profit warning

    By John Tilak
    TORONTO, Feb 7 (Reuters) - Canada's main stock index climbed
to its highest in two weeks on Friday, supported by gains in
most major sectors as investors cheered a strong Canadian jobs
report and shrugged off disappointing U.S. nonfarm payrolls
data.
    The Toronto market was up for a fourth straight session,
following a major selloff on Monday, and managed to end the week
higher.
    Weighing on the index, shares of Baytex Energy Corp 
tumbled a day after the oil producer agreed to buy Australia's
Aurora Oil & Gas Ltd for C$2.6 billion ($2.4 billion)
including debt. 
    The Canadian economy recorded its biggest employment gain
since August in January, topping market estimates, and the
unemployment rate fell, according to government figures.
 
    The U.S. jobs report painted a mixed picture as employers
hired fewer workers than expected in January, but the
unemployment rate hit a new five-year low. 
    "Despite the (U.S.) headline numbers being weak, the fact
that it was not a total disaster has helped to bring some
confidence back to the market," said Elvis Picardo, strategist
and vice president of research at Global Securities in
Vancouver.
    "It's more a function of investors viewing recent declines
as a buying opportunity, coupled with the fact that there's been
some stabilization in emerging markets," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 73.10 points, or 0.53 percent, at 13,786.50.
    The benchmark Canadian index is up 1.2 percent this year,
compared with a decline in the S&P 500.
    "As the world economy strengthens, the TSX will start to
benefit," said Picardo, who sees double-digit gains in the index
this year. "That core premise hasn't changed."
    Seven of the 10 main sectors on the resource-heavy index
were higher on Friday.
    Financials, the index's most heavily weighted sector, were
up 0.2 percent, with Royal Bank of Canada adding 0.2
percent to C$70.10. 
    The biggest jump came from gold-mining shares, which gained
3 percent, lifted by a higher bullion price. Barrick Gold Corp
 rose 2.1 percent to C$20.88, and Goldcorp Inc 
climbed 2.8 percent to C$28.24.
    Energy shares felt the impact of Baytex's decline on Friday.
The stock shed 4.6 percent to C$39.72, and elsewhere in the
group Encana Corp dropped 3.1 percent to C$20.31.
    In corporate news, leisure-products company Dorel Industries
Inc said on Thursday that it will report a drop in
fourth-quarter earnings. The stock slid 7.6 percent to C$36.66
and showed the biggest percentage decline on the index.
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