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CANADA STOCKS-TSX up with financials, miners as yields, copper rise

Published 2017-07-31, 10:45 a/m
CANADA STOCKS-TSX up with financials, miners as yields, copper rise
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* TSX up 33.89 points, or 0.22 percent, at 15,162.54

* Half of TSX's 10 main groups were higher

TORONTO, July 31 (Reuters) - Canada's main stock index rose on Monday as higher bond yields supported its biggest banks and insurers and its base metal miners got a boost from copper prices hitting their highest in two years.

Meanwhile, Hudson's Bay Co HBC.TO rose 2.6 percent to C$10.87 after activist investor Land and Buildings Investment Management threatened a proxy war at the Canadian retailer if it did not take steps to "enhance shareholder value." 10:35 a.m. ET (1435 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 33.89 points, or 0.22 percent, at 15,162.54.

It is on track for a 0.2 percent slip on the month.

The heavyweight financials group gained 0.4 percent, as the yield on Canadian 10-year bonds hit its highest since late 2014, with insurer Manulife Financial Corp MFC.TO adding 1.1 percent to C$25.73.

Higher bond yields reduce the value of insurance companies' liabilities and increase the net interest margins of banks.

The materials group, which includes precious and base metals miners and fertilizer companies, added 0.7 percent, even as several gold miners weighed.

Copper prices were at a two-year peak, boosted by a Chinese government-led infrastructure push that kept construction humming in the world's second-largest economy. Quantum Mineral Ltd FM.TO added 3 percent to C$13.86 and Teck Resources Ltd TECKb.TO rose 1.9 percent to C$26.87.

Gold miners were more mixed, however, with several slipping even as the price of bullion hit its highest in nearly seven weeks on a struggling U.S. dollar. Gold Corp ELD.TO fell 6.8 percent to C$2.61, hitting its lowest since 2005, as several analysts cut their recommendations and price targets on the stock following disappointing earnings on Friday.

B2Gold Corp BTO.TO fell 4.8 percent to C$3.20.

NexGen Energy NXE.TO jumped 6.9 percent to C$3.25 after the uranium explorer reported the results of an initial economic assessment of its Arrow deposit in Saskatchewan. energy group retreated 0.7 percent, with Encana Corp ECA.TO down 1.7 percent at C$12.42 and Canadian Natural Resources Ltd CNQ.TO off 0.6 percent at C$38.28.

Half of the index's 10 main groups were in positive territory, with advancers barely outnumbering decliners.

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