CANADA STOCKS-TSX advances as Ukraine tensions abate

Reuters

* TSX up 79.19 points, or 0.52 percent, at 15,275.50 * All 10 main index sectors advance * TD, Scotiabank drive market's gains By John Tilak TORONTO, Aug 11 (Reuters) - Canada's main stock index climbed on Monday as an easing of tensions in Ukraine helped drive up shares of all major sectors.

An announcement by Russia late last week that it had ended military exercises near the Ukraine border has boosted global equity markets.

Stocks had been under increasing pressure in recent weeks due to several geopolitical crises that have been simmering around the world, including in Iraq and Gaza.

Iraqi Prime Minister Nuri al-Maliki was battling to keep his job, deploying forces across Baghdad as erstwhile allies nominated a replacement.

Despite the recent choppy action, the Toronto market is up about 12 percent this year and investors are wondering if the market might correct itself to better reflect corporate earnings potential.

"Markets are just going to go sideways. We'll have a rally today and maybe a selloff tomorrow," said David Cockfield, managing director and portfolio manager at Northland Wealth Management.

"I don't think the market has the horsepower to really move higher at this point," he added. "We need to consolidate for a while, let earnings catch up and multiples drift down a little bit." The Toronto Stock Exchange's S&P/TSX composite index was up 79.19 points, or 0.52 percent, at 15,275.50. All of the 10 main sectors on the index were higher.

Financials, the index's most heavily weighted sector, rose 0.6 percent. Toronto Dominion Bank gained 0.7 percent to C$55.99, and Bank of Nova Scotia added 0.6 percent to C$71.99. The two stocks had the biggest positive influence on the market.

Shares of energy producers received support from higher oil prices. Enbridge Inc advanced 1.1 percent to C$54.06, and Encana Corp was up 0.5 percent, at C$23.92.

(Editing by Nick Zieminski)

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