CANADA STOCKS-TSX climbs with Encana, energy shares

Tue May 13, 2014 4:47pm EDT

* TSX rises 24.87 points, or 0.17 percent, to 14,679.81
    * Seven of the 10 main index sectors advance
    * Encana jumps 2 percent after reporting results
    * Valeant slips after plans to raise Allergan bid

    By John Tilak
    TORONTO, May 13 (Reuters) - Canada's main stock index
advanced on Tuesday as higher oil prices boosted energy
producers and strong quarterly results fueled a jump in shares
of Encana Corp. 
    Encana climbed 2 percent after the natural gas producer said
its first-quarter operating profit more than doubled, helped by
higher gas prices and liquids production. 
    Feeding into the market mix was economic data from the
world's two biggest economies. U.S. retail sales barely rose in
April and a gauge of consumer spending slipped. 
    In China, figures showed a widespread slowing of economic
activity in April, with data from output to investment and
consumption all missing market expectations, increasing calls
for government policies to support growth. 
    Investors were encouraged, however, by comments from two
Bundesbank sources, who indicated that the German central bank
was prepared to support European Central Bank policy action to
boost the economy. 
    The Toronto Stock Exchange's benchmark index was up for a
second straight session, and has gained about 7.8 percent this
year.
    "It's a pretty mixed picture today," said Youssef Zohny,
portfolio manager at Stenner Investment Partners, a subsidiary
of Richardson GMP. "It's a tug-of-war between some of the
comments out of Europe versus the soft economic data in China."
    "The TSX has had a pretty nice rally for the year, so it
wouldn't surprise us to see it cool down a little bit," he
added. "But the energy and materials sides of the market seem to
be offering some good value here."
    The S&P/TSX composite index closed up 24.87
points, or 0.17 percent, at 14,679.81. Seven of the 10 main
sectors on the index were higher.
    Shares of energy companies rose 0.7 percent. Suncor Energy
Inc added 0.8 percent to C$43.15, and Talisman Energy
Inc advanced 0.3 percent to C$11.63.
    Financials, the index's most heavily weighted sector,
climbed 0.2 percent, with Toronto-Dominion Bank gaining
0.3 percent to C$52.34.
    In other corporate news, Valeant Pharmaceuticals
International Inc said it will "improve" its $47
billion takeover offer for drugmaker Allergan Inc.
Valeant shares were down 0.4 percent at C$141.40.
 
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)