CANADA STOCKS-TSX bounces back up on commodities, earnings

* TSX up 43.87 points at 11,711.63

* Materials, energy, bank shares all higher
(Updates to afternoon)

By Claire Sibonney

TORONTO, July 23 (BestGrowthStock) – Toronto’s main stock index
climbed back up Friday afternoon in volatile trading as
commodity prices strengthened and a fresh batch of solid North
American earnings boosted sentiment.

Copper rallied to a two-month high, helped by fund buying
and with gains undisturbed, as investors digested results of
European bank stress tests, pushing base-metal mining stocks up
1.4 percent. [MET/L] [ID:nN23155614]

Teck Resources (TCKb.TO: ) jumped 1.6 percent to C$37.00,
while First Quantum Minerals (FM.TO: ) gained 1.2 percent to
C$67.58.

“China is now taking more of a growth stance over an
inflation concern stance right now, which to us is much more
meaningful in the short term than whether the European
sovereign crisis is going to result into anything,” said Rick
Meslin, head of Canadian equities at UBS Securities Canada.

“That’s a constructive market as far as I’m concerned,
especially in Canada, where materials are such an emphasis.”

The investor mood also benefited from a new round of solid
corporate results, including Verizon Communications Inc.
(VZ.N: ), and a dividend hike by General Electric Co. (GE.N: ).

On the domestic earnings front, Canadian National Railway
(CNR.TO: ) rose 1.6 percent to C$64.72 after it reported a 38
percent leap in quarterly profit on Thursday and raised its
full-year forecast. [ID:nN22122933]

“(Earnings) have been very positive for the market …
There’s been a smaller set of Canadian numbers, but the CN Rail
numbers have caught attention and have been positive for the
market,” said Fergal Smith, managing market strategist at
Action Economics.

At 2:34 p.m. (1834 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was up 43.87 points, or 0.4
percent, at 11,711.63.

Heavily-weighted financial shares gained 0.5 percent as
Royal Bank of Canada (RY.TO: ) added 0.3 percent to C$52.13 and
Bank of Montreal (BMO.TO: ) rose 1.4 percent to C$61.94.

Also on the plus side for riskier assets, data showed
Britain’s economy grew almost twice as fast as expected in the
second quarter and German business sentiment leaped by a record
margin in July. [ID:nLDE66M0RN] [ID:nLDE66M0JV]

“Over the last few days, sentiment is turning to the
positive, as these big events like the sovereign debt crisis
and China crisis … become just a little more manageable,”
added Meslin.

As well, U.S. crude oil futures briefly turned higher in
late trading on Friday as Wall Street rose, sending energy
shares up 0.2 percent. [O/R]

Among the decliners, contract electronics manufacturer
Celestica Inc. (CLS.TO: ) slid 3.7 percent to C$9.08 after
reporting a quarterly net loss, hurt by higher restructuring
charges. [ID:nSGE66M0EC]. That helped drag the technology
sector down 1 percent.

In other company news, Magna International (MGa.TO: ) rose 1
percent to C$77.55 after the auto parts maker announced that
three-quarters of its subordinate shareholders approved a deal
that would pay founder Frank Stronach upward of $1 billion to
effectively give up control of the company. [ID:nN23121319]

Stock Research

($1=$1.04 Canadian)
(Reporting by Claire Sibonney; Editing by Paul Simao)

CANADA STOCKS-TSX bounces back up on commodities, earnings