TSX halts three-day slide, but energy stocks weigh
By Alastair Sharp TORONTO (Reuters) - Canada's main stock index broke a three-day slide on Thursday in a broad rally in which gold miners gained on higher bullion prices as the U.S. dollar weakened, but the heavyweight oil and gas sector fell along with crude prices. The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> ended up 47.40 points, or 0.32 percent, at 15,028.12. Nine of the index's 10 main sectors gained. That followed a 1.2 percent drop over the previous three days, in which bond market gyrations and economic worries rattled investors. "The market is vulnerable still," said John Ing, president of Maison Placements Canada. "The move in gold is the canary in the coal mine." The price of bullion hit a three-month high as the U.S. dollar came under pressure following mixed economic data that pushed back expectations for higher U.S. interest rates. [GOL/] First Quantum Minerals Ltd , which mines gold as well as copper and other metals, gained 1.9 percent to C$18.44. Goldcorp Inc added 1.1 percent to C$23.49. Ing said that with interest rates globally expected to rise in the long term, dividend-focused stocks such as telecoms and utilities will likely fall out of favor. "We're turning a corner, and those previous havens and attractions, in a higher interest rate environment aren't going to be participating," he said. Energy stocks were down 0.9 percent, with Canadian Natural Resources falling 1.3 percent to C$37.80 and Enbridge Inc off 1 percent at C$60.44. Oil prices, which have rallied sharply in recent weeks, pulled back as ample global supplies weighed. [O/R] Paul Taylor, chief investment officer, fundamental equities, at BMO Asset Management Inc, cautioned that the TSX was not trading at a level commensurate to the full-year earnings expected from companies. "We still feel that unless we get a dramatically different trajectory in the price of oil, the Canadian equity market is ahead of itself." Bombardier Inc shares rose 5.1 percent to C$2.68 after the company announced plans to cut 1,750 jobs in its business-jet unit. Canadian Tire Corp advanced 1.3 percent to C$128.11 after the retailer reported a stronger-than-expected quarterly profit. (Additional reporting by Solarina Ho; Editing by Matthew Lewis; and Peter Galloway)
