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CANADA STOCKS-TSX rises as Canadian Natural Resources leads energy bounce

Published 2017-03-09, 11:11 a/m
© Reuters.  CANADA STOCKS-TSX rises as Canadian Natural Resources leads energy bounce
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* TSX rises 31.02 points, or 0.2 percent, to 15,528.00.

* Seven of the TSX's 10 main groups climb

TORONTO, March 9 (Reuters) - Canada's main stock index edged higher on Thursday as Canadian Natural Resources CNQ.TO led a rebound in energy shares after sharp losses the day before, and the materials group gained ground.

Royal Dutch Shell Plc RDSa.L agreed to sell its existing and undeveloped Canadian oil sands interests to Canadian Natural Resources and to cut its share in the Athabasca Oil Sands Project from 60 percent to 10 percent. nL5N1GM1VZ

Shares of Canadian Natural Resources rose more than 8 percent to C$42.64, while the overall energy group advanced 1.4 percent even as oil prices fell.

U.S. crude CLc1 was down 1.4 percent at $49.56 a barrel, extending recent losses as record inventories kept sentiment weak. Thursday's gains, the energy group has fallen nearly 11 percent since the start of the year. On Wednesday, it posted its lowest close since September.

The materials group added 0.7 percent on Thursday as gains for fertilizer shares offset lower metal prices.

Potash Corp of Saskatchewan Inc POT.TO rose 4.3 percent to C$23.82, and merger partner Agrium Inc AGU.TO gained nearly 4 percent to C$132.59.

Gold futures GCc1 fell 0.2 percent to $1,205.60 an ounce, while copper prices CMCU3 declined 1.3 percent to $5,693.5 a tonne. GOL/ MET/L

At 11:09 a.m. EST (1605 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 31.02 points, or 0.2 percent, at 15,528.00.

Seven of the index's 10 main groups advanced. The heavyweight financials group edged up 0.1 percent as bond yields climbed after upbeat comments by European Central Bank President Mario Draghi on the economy there.

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

Dorel Industries Inc DIIb.TO tumbled 9.6 percent to C$31.23 after the global consumer products company reported fourth-quarter results.

Canada's industrial capacity rose to its highest level in two years in the fourth quarter, lifted by gains in the mining and quarrying sector and a rebound in construction, data from Statistics Canada showed.

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