(Adds strategist comment, details; updates prices)
* TSX rises 61.32 points, or 0.45 percent, to 13,590.49
* Resource stocks jump 1.8 percent
By Fergal Smith
TORONTO, Nov 2 (Reuters) - Canada's main stock index managed
a modest bounce on Monday after falling sharply to end last
week, helped by a rebound in Valeant Pharmaceuticals (N:VRX)
International Inc VRX.TO and by gains in resource stocks.
The market shrugged off disappointing manufacturing data
from China, with the slower pace of contraction heartening
investors. urn:newsml:reuters.com:*:nL3N12X1KO
"We are starting to see signs that deceleration (in China)
is leveling off a little bit," said Craig Fehr, Canadian market
strategist at Edward Jones in St. Louis, Missouri.
The materials group rallied 1.8 percent, paced by fertilizer
stocks. Potash Corp POT.TO gained 3.1 percent to C$27.30 and
Agrium Inc AGU.TO added 1.2 percent to C$123.15.
Cameco Corp CCO.TO , however, tumbled nearly 3 percent
after posting lower adjusted quarterly earnings on Friday as an
oversupply continued to affect demand and pricing. urn:newsml:reuters.com:*:nL1N12U34C
At 2:28 p.m. EST (1928 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE rose 61.32 points, or 0.45
percent, to 13,590.49.
Across the index, advancing issues outnumbered decliners by
144 to 94.
The index had dropped nearly 2 percent on Friday as Valeant
slumped and the banking sector retreated, trimming the monthly
gain for October to 1.7 percent.
But Valeant rebounded on Monday, jumping 7.1 percent to
C$130.67, after a short-seller's latest report on the embattled
drug company did not include new allegations. urn:newsml:reuters.com:*:nL3N12X56D
The index's energy group gained 1.8 percent, with Canadian
Natural Resources adding 2.5 percent to C$31.08. Sources told
Reuters late last week that the company has discussed spinning
off royalty assets with some pension plans and strategic buyers.
urn:newsml:reuters.com:*:nL1N12U2ML
The rally in the energy group came despite a 1.2 percent
drop in U.S. crude oil CLc1 to $46.02 a barrel. O/R
Consumer staples fell 0.9 percent, with Empire Co Ltd
EMPa.TO down 3.0 percent at C$26.57.
The heavyweight financials group slipped 0.2 percent, with
losses for some major bank stocks offsetting gains for insurers.
Manulife Financial Corp MFC.TO advanced 0.6 percent to C$21.80
and Bank of Montreal fell nearly 1 percent to C$75.32.