CANADA STOCKS-TSX rises as energy, mining shares jump

Mon May 12, 2014 5:09pm EDT

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* TSX rises 120.88 points, or 0.83 percent, to 14,654.94
    * All of 10 main index sectors advance
    * Valeant slips after Allergan rejects bid

    By John Tilak
    TORONTO, May 12 (Reuters) - Canada's main stock index rose
on Monday, reversing some of the previous week's losses, as
shares of natural resource companies were buoyed by advances in
the prices of commodities such as gold, copper and oil.
    Commodity prices benefited from worries about the situation
in eastern Ukraine, where pro-Moscow rebel leaders called for
their region to become part of Russia, the day after staging a
referendum on self-rule. Moscow, however, stopped short of
endorsing their bid for annexation. 
    The Toronto market's advance came on the heels of a 1.6
percent drop in the previous week caused by concerns over
Ukraine and a selloff in energy stocks. 
    The energy sector jumped 1.3 percent on Monday and had the
biggest positive influence on the market. The group, one of the
strongest performers this year, is up more than 14 percent so
far in 2014.
    "We're seeing a new interest in oil and gas," said Michael
Simpson, senior portfolio manager at Sentry Investments. 
    Higher oil prices and the prospects of a possible rise in
natural gas prices were supporting energy shares, he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 120.88 points, or 0.83 percent, at
14,654.94. It has added about 7.6 percent this year.
    While stocks are not as cheap as they were a while ago,
investors recognize that equities are "a much better alternative
to investing in bonds," Simpson said. But he added that "some
investors want to limit their exposure to Canada because they
are seeing a stronger U.S. economy."
    All of the 10 main sectors on the index were higher on
Monday.
    A gain in the price of oil boosted the shares of energy
producers. Canadian Natural Resources Ltd was up 2.3
percent at C$43.89, and Suncor Energy Inc rose 1.6
percent to C$42.80. 
    The materials sector, which includes mining stocks, was up
1.5 percent. Teck Resources Ltd added 4.1 percent to
C$25.39, and First Quantum Minerals Ltd advanced 4.9
percent to C$22.04.
    The price of bullion rose 0.7 percent, while copper jumped 2
percent.
    In corporate news, U.S. drugmaker Allergan Inc 
rejected Valeant Pharmaceuticals International Inc's 
unsolicited takeover offer, saying it substantially undervalued
the company. Valeant shares gave back 0.7 percent to C$141.98.
 

 (Editing by Nick Zieminski and Andre Grenon)
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