CANADA STOCKS-TSX advances as Ukraine tensions abate

Mon Aug 11, 2014 10:26am EDT

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* TSX up 79.19 points, or 0.52 percent, at 15,275.50
    * All 10 main index sectors advance
    * TD, Scotiabank drive market's gains

    By John Tilak
    TORONTO, Aug 11 (Reuters) - Canada's main stock index
climbed on Monday as an easing of tensions in Ukraine helped
drive up shares of all major sectors.
    An announcement by Russia late last week that it had ended
military exercises near the Ukraine border has boosted global
equity markets. 
    Stocks had been under increasing pressure in recent weeks
due to several geopolitical crises that have been simmering
around the world, including in Iraq and Gaza.
    Iraqi Prime Minister Nuri al-Maliki was battling to keep his
job, deploying forces across Baghdad as erstwhile allies
nominated a replacement. 
    Despite the recent choppy action, the Toronto market is up
about 12 percent this year and investors are wondering if the
market might correct itself to better reflect corporate earnings
potential. 
    "Markets are just going to go sideways. We'll have a rally
today and maybe a selloff tomorrow," said David Cockfield,
managing director and portfolio manager at Northland Wealth
Management.
    "I don't think the market has the horsepower to really move
higher at this point," he added. "We need to consolidate for a
while, let earnings catch up and multiples drift down a little
bit."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 79.19 points, or 0.52 percent, at 15,275.50.
All of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector, rose
0.6 percent. Toronto Dominion Bank gained 0.7 percent to
C$55.99, and Bank of Nova Scotia added 0.6 percent to
C$71.99. The two stocks had the biggest positive influence on
the market.
    Shares of energy producers received support from higher oil
prices. Enbridge Inc advanced 1.1 percent to C$54.06,
and Encana Corp was up 0.5 percent, at C$23.92. 

 (Editing by Nick Zieminski)
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