TSX higher, led by rising energy mining stocks

; N.Y. closed for King holiday19 minutes ago via Canadian Press
TORONTO - Energy and mining stocks supported the Toronto stock market to a modest gain Monday morning.

The S&P/TSX composite index moved 50.2 points higher to 11,735.6 after a lukewarm start to the U.S. quarterly earnings season and moves by China to cool its economy pushed the main index down more than two per cent last week to below where it started the new year.
"When China raised the reserve requirements, it was unexpected," said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier.

"All of a sudden, you say: Is some of the global stimulus going to be removed quicker than I thought?"

The TSX Venture Exchange climbed 5.64 points to 1,599.11.
Volumes were lower than normal with New York markets closed for the Martin Luther King holiday.

A day before the Bank of Canada makes its scheduled announcement on interest rates, the Canadian dollar moved 0.38 of a cent higher to 97.52 cents US. The central bank is widely expected to leave rates - which hover near zero - alone until at least the end of the second quarter.

The base metals sector was up one per cent as the March copper contract on the New York Mercantile Exchange rose five cents to US$3.42 a pound in electronic trading. Teck Resources (TSX:TCK.B) added 46 cents to $41.26 while Labrador Iron Mines Holdings (TSX:LIM) ran up 21 cents to $5.09.

The February crude contract rose 54 cents to US$78.54 a barrel, taking the energy sector ahead 0.56 per cent. EnCana Corp. (TSX:ECA) improved 61 cents to $35.82 while Imperial Oil (TSX:IMO) gained 46 cents to $41.10.

Crude prices fell every day last week, losing just over five per cent, as the first batch of fourth-quarter earnings and economic data pointed to signs of continued weakness in the U.S. economy.
Oil and gas explorer Enterra Energy Trust (TSX:ENT.UN) said Monday it will drop its income trust structure and convert to a corporation by the end of May, changing its name in the process to Equal Energy Ltd.. Calgary-based Enterra said Monday it wants to make the move before a change in the rules governing the taxation scheme for trusts kicks in 2011. Enterra units jumped 54 cents or five per cent to $2.70.

Shares in Cirrus Energy Corp. (TSXV:CYR) dropped 65 cents or 23.38 per cent to $2.13 after delivering a disappointing update on its drilling activities at its subsidiary in Holland. A platform refurbishment was meant to allow "continuous uninterrupted production" from its well. Instead, production performance has steadily declined.

The February gold contract gained $4.60 to US$1,135.10 an ounce and the gold sector climbed 0.54 per cent. Goldcorp Inc. (TSX:G) gained 65 cents to $41.25 and Kinross Gold Corp. (TSX:K) was ahead 22 cents to $19.97.

The non-commodity sector of the TSX was also supportive as Magna International (TSX:MG.A) advanced 54 cents to $59.31 and Royal Bank (TSX;RY) gained 23 cents to $55.04.
When Wall Street returns on Tuesday, the focus will turn towards the next batch of fourth-quarter corporate earnings figures, including those from Citigroup Inc. and IBM Corp.
So far, earnings have been fairly mixed, with upside surprises from the likes of Intel Corp. offset by disappointments elsewhere, most notably Alcoa Inc. and JPMorgan Chase.
"Are they going to meet their guidance? And how are they going to meet it? asked Nakamoto.
"Expectations have ratcheted up."

In other corporate news, a group of bidders including former Canadian senator Jerry Grafstein says it's preparing to make an offer for some of Canwest's (CGS.V) newspapers, including its flagship National Post. The consortium of investors also includes former Global TV executive and Montreal Star editor Raymond Heard and writer and broadcaster Beryl Wajsman.
But Nakamoto said he expected there are funds and companies that would be interested in the whole newspaper chain.

"I would think there's a bunch of private equity investors - like even Onex Corp. (TSX:OCX). Why wouldn't they look at it? It seems right up their alley. Or why wouldn't the Ontario Teachers Pension Fund look at it? There's a lot of money out there."
Canwest shares were unchanged at 8.5 cents.
Mosaid Technologies Inc. (TSX:MSD) shares rose $1.56 to $21.62 after it said its revenue will be $3 million higher in the 2010 financial year than previously thought, rising to an estimated range of $68 million to $70 million. It said the improved performance is the result of a landmark licensing agreement between the Ottawa patent firm and Samsung Electronics Co., Ltd.
Heritage Oil Corp. (TSX:HOC) says that Tullow Uganda Ltd. has exercised its right to pre-empt Heritage's sale of a 50 per cent interest of two blocks in Uganda to Italy's Eni International B.V., and will pay more than US$1.35 billion for the assets. Heritage shares ran ahead $1.20 or 14.6 per cent to $9.41.
New Flyer Industries Inc. (TSX:NFI.UN) said Friday it received orders for 711 buses in the fourth quarter for a total of $308 million. The company said the orders included 506 new firm and option orders and 205 exercised options for buses. Its units added 20 cents to $10.60.
In overseas trading, Japan's Nikkei 225 stock average ended 1.2 per cent lower while Hong Kong's Hang Seng fell 0.9 per cent.
London's FTSE 100 index was up 0.74 per cent, Frankfurt's DAX gained 0.67 per cent while the Paris CAC40 climbed 0.62 per cent.