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CANADA STOCKS-TSX up after strong energy week, Magna up on demand

Published 2016-02-26, 05:13 p/m
CANADA STOCKS-TSX up after strong energy week, Magna up on demand
XAU/USD
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GC
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LCO
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CL
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MGA
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GSPTSE
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CNQ
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CVE
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DXY
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(Adds portfolio manager comment, details, updates prices to
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* TSX ends up 44.19 points, or 0.35 percent, at 12,797.79
* Six of the TSX's 10 main groups rise
* Index marginally lower on week

By Ethan Lou
TORONTO, Feb 26 (Reuters) - Canada's main stock index rose
on Friday, helped by gains in some major banks and energy
companies and by a jump in shares of auto parts maker Magna
International Inc, which reported strong European and North
American demand.
Oil CLc1 LCOc1 hit a seven-week high before settling
lower as investors took profits at the end of a strong week for
the commodity. O/R
Canada's energy group gained 0.9 percent, with pipeline
company Enbridge Inc ENB.TO adding 2 percent to C$46.98 and
Cenovus Energy Inc CVE.TO up 4.5 percent to C$14.90.
Canadian Natural Resources CNQ.TO , which had fallen a day
earlier after its debt was downgraded by Moody's, rebounded 2.3
percent to C$27.39.
While stubbornly low prices for crude and other petroleum
products have hurt Canada's heavyweight energy sector, it also
offers stimulative opportunities for the rest of the economy,
said Rick Hutcheon, president and chief operating officer at RKH
Investments.
"It's cheaper to make things, cheaper to drive your car, you
know?" he said. "More consumers have more spending power and so
on and so forth."
The consumer groups were higher on the day, with
discretionary names gaining 2 percent and staples up 1 percent.
Magna shares jumped 7.3 percent to C$51.62 after reporting a
much higher-than-expected quarterly profit as low gasoline
prices boosted demand for vehicles in Europe and North America.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed the session up 44.19 points, or 0.35 percent,
at 12,797.79. It was barely lower on the week.
Six of the index's 10 main groups were in positive
territory, with gainers outnumbering decliners by more than
2-to-1.
Magna MG.TO rose 7.3 percent to C$51.62, as it reported
quarterly sales growth, excluding a roughly $770 million hit
from a strong U.S. dollar.
The materials group, which includes precious and base metals
miners and fertilizer companies, lost 1.6 percent.
Gold XAU= fell more than 1 percent as the U.S. dollar
.DXY and global shares rose. GOL/
Goldcorp Inc G.TO slumped 13 percent to C$18.73 after the
world's largest gold producer by market value forecast 2016 gold
production of 2.8 to 3.1 million ounces, lower than its 2015
output, and reduced its dividend after the bell on Thursday.

The financials group gained 0.8 percent while industrials
rose 0.2 percent and technology stocks added 0.6 percent.

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