CANADA STOCKS-TSX climbs as energy shares rise on Gulf storm threat

Reuters

* TSX rises 37.36 points, or 0.29 percent, to 12,772.48

* Nine of the 10 main index sectors advance

* Suncor has biggest positive influence on index

* Air Canada jumps after load factor results

By John Tilak

TORONTO, Oct 4 (Reuters) - Canada's main stock index

advanced on Friday as investors brushed aside worries over the

U.S. government shutdown, with gains in the energy and financial

sectors supporting the market.

As Tropical Storm Karen moved through the Gulf of Mexico,

affecting U.S. energy output, the price of oil rose on supply

concerns. Shares of energy companies climbed and

had the biggest positive impact on the index.

With the U.S. government shutdown dragging into a fourth

day, investors watched closely as Republican members of the

House of Representatives got together to chart their next course

of action.

But the market appeared to shrug off fears that lawmakers

will fail to resolve the budget crisis and prevent a debt

default.

Rick Hutcheon, president and chief operating officer at RKH

Investments, said the TSX will tread water until the U.S.

political situation is resolved but will make gains as the

economy improves and commodity prices stabilize.

"Everyone is sitting on their hands, waiting for Washington

to make their move," he said. "They'll have their bickering and

fighting, but ultimately they'll come to an agreement."

"I don't see it having a huge impact on Canada," he said,

but added that the longer the U.S. impasse lasts, the more

negative it could be for the Canadian market.

The Toronto Stock Exchange's S&P/TSX composite index

was up 37.36 points, or 0.29 percent, at 12,772.48.

Nine of the 10 main sectors on the index were higher.

Financials, the index's most heavily weighted sector,

advanced 0.3 percent. Royal Bank of Canada rose 0.4

percent to C$66.23, and Toronto-Dominion Bank was up 0.4

percent at C$91.53.

Energy companies climbed, with Suncor Energy Inc

added 1.2 percent to C$36.67, playing the biggest role of any

single stock in leading the market higher. Canadian Natural

Resources Ltd rose 0.6 percent to C$31.96.

Air Canada jumped about 10 percent to C$4.37 after

it reported load factor results late on Thursday.

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