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CANADA STOCKS-TSX rides resource rally; Shopify extends losses

Published 2017-10-05, 11:30 a/m
© Reuters.  CANADA STOCKS-TSX rides resource rally; Shopify extends losses
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* TSX up 45.51 points, or 0.29 percent, to 15,766.51

* Six of the TSX's 10 main groups rise

By Solarina Ho

TORONTO, Oct 5 (Reuters) - Canada's main stock index advanced on Thursday, fueled by a rally in mining and energy stocks as commodity prices rose, but gains were tempered by a sharp fall in shares of Shopify Inc SHOP.TO for a second straight day.

The materials group, which includes precious and base metals miners and fertilizer companies, rose for the fourth day in a row on bullish sentiment about demand, particularly from China, and a rally in the price of copper.

The group rallied 0.8 percent, with First Quantum Minerals Ltd FM.TO jumping 5.2 percent to C$15.88, and Teck Resources TECKb.TO advancing 3.7 percent to C$28.76. Ivanhoe Mines Ltd IVN.TO surged 7.1 percent to C$4.58.

Copper prices CMCU3 advanced 2.4 percent to $6,677.5 a tonne. MET/L

"Recently, there's been some decent numbers out of China. That's driving sentiment ... China right now is consuming a lot of everything," said Manash Goswami, a Portfolio Manager with First Asset Investment Management Inc.

"There's been a lot of under-investment in actual mines over the years ... Maybe this is the time we'll actually see some pick-up."

At 11:07 a.m. ET (1507 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 45.51 points, or 0.29 percent, at 15,766.51. Six of the index's 10 key sectors advanced.

The energy group climbed 0.8 percent as oil prices heated up on signs that Saudi Arabia and Russia would limit production through next year. U.S. crude CLc1 was up 2.0 percent to $51 a barrel, while Brent crude LCOc1 added 2.2 percent to $57.02. Energy CVE.TO was up 1.5 percent to C$12.44.

TransCanada Corp TRP.TO edged up 0.2 percent to C$61.02, despite news the company was cancelling certain pipeline projects. Goswami said the move was anticipated and that projects are weighted, with investors taking into account other factors in its valuation of the company. some of the gains was Shopify's sharp retreat in heavy trading. Shares fell 3.5 percent to C$124.41, extending Wednesday's losses after short-seller Citron Research said the stock was overvalued and criticized the Canadian ecommerce software provider's marketing practices. issues outnumbered declining ones on the TSX by 182 to 60, for a 3.03-to-1 ratio on the upside.

The index posted 12 issues that hit new 52-week highs.

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