CANADA STOCKS-CP Rail and energy shares drive TSX higher


* TSX up 42.21 points, 0.28 percent, at 15,246.69 * Eight of the 10 main index sectors advance * CP Rail extends run after Thursday's earnings report By John Tilak TORONTO, July 18 (Reuters) - Canada's main stock index climbed on Friday, supported by gains in shares of energy producers and Canadian Pacific Railway Ltd, as investors shrugged off worries about heightening tensions in Ukraine.

World leaders called for an international investigation after a Malaysian airliner with 298 people on board crashed over eastern Ukraine. The incident is the latest twist in the volatile situation in the region.

Adding to global geopolitical concerns, Israel intensified its land offensive in Gaza with artillery, tanks and gunboats, while it warned of a further expansion of its operation.

The benchmark Toronto stock market index, which hit a record high in the previous session, is up nearly 12 percent this year. Investors are concerned that further gains could be tough to make.

"I expect the market to keep bumping along here for a while," said David Cockfield, managing director and portfolio manager at Northland Wealth Management. "What's going on in Israel and Ukraine makes people a little less aggressive." "If we have some really good second-quarter earnings reports, that might light a fire," he added.

The Toronto Stock Exchange's S&P/TSX composite index was up 42.21 points, 0.28 percent, at 15,246.69. Eight of the 10 main sectors on the index were higher.

Shares of energy producers climbed 0.8 percent, with Suncor Energy Inc adding 0.9 percent to C$44.69 and Canadian Natural Resources Ltd rising 0.9 percent to C$47.86.

CP Rail jumped for a second straight session after reporting quarterly results on Thursday. The stock was up 2.5 percent at C$207.34.

The gold-mining sector dropped 1.7 percent, weighed down by a decline in the bullion price. Goldcorp Inc fell 1.9 percent to C$29.70, and Barrick Gold Corp gave back 1.2 percent to C$20.38.

($1=$1.07 Canadian) (Reporting by John Tilak; Editing by Peter Galloway)

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