(Updates prices)
* TSX up 29.38 points, or 0.25 percent, at 11,872.49.
* Seven of the TSX's 10 main groups were higher
TORONTO, Jan 21 (Reuters) - Canada's main stock index gained
in morning trade on Thursday as energy stocks rebounded from a
recent slump even as crude oil prices sat near 12-year lows.
Banks also rose, while miners and railways weighed.
At 10:32 a.m. EST (1532 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 29.38 points, or 0.25
percent, at 11,872.49. Seven of its 10 main groups were higher.
The index hit its lowest level since August 2012 on
Wednesday.
Depressed crude oil prices have weighed on the
resource-linked market, including fears that Canadian banks will
take a hit to profit in 2016, as more corporate loans sour, oil
and gas capital raising dries up and job losses take a toll on
banks' consumer arms.
The most influential drags on Thursday were the railways,
with Canadian Pacific Railway Ltd CP.TO falling 4.4 percent to
C$144.52 after it missed profit expectations on lower freight
volumes.
Canadian National Railway Co CNR.TO declined 3.3 percent
to C$66.79.
The energy group climbed 2.3 percent, while the financials
group gained 0.7 percent.
Royal Bank of Canada RY.TO advanced 0.8 percent to C$66.11
after British insurer Aviva AV.L said it would buy RBC's
general insurance arm for C$582 million ($403
million).
Gold miners and fertilizer companies also weighed, with
bullion lower on a weaker euro and skittish investors wary of a
possible global slowdown. GOL/
Barrick Gold Corp ABX.TO declined 3.8 percent to C$11.34
and Goldcorp Inc G.TO lost 4.4 percent to C$13.69.
Potash Corp POT.TO fell 1.7 percent to C$23.17 and Agrium
Inc AGU.TO slipped 0.9 percent to C$124.25.
Bombardier fell 3.3 percent to C$1.16 after United Airlines
UAL.N agreed to buy 40 small planes from Boeing (N:BA) Co, a blow for
the Canadian plane and train maker, which has sought a major
customer to give momentum to its fledgling CSeries jets.