TORONTO (Reuters) - The Toronto Stock Exchange's main index sagged on Friday morning, pulled lower by weak resource companies while commodity prices softened.
But losses were partly offset by a big jump in shares of
BCE Inc
BCE jumped C$4.35, or 12.4 percent, to C$39.50.
Francis Campeau, broker at MF Global Canada, in Montreal, said the stock looked unlikely to go much above C$40 until the banks financing the deal provide more information,
In the past year since the deal was announced, BCE's shares have traded below the proposed purchase price amid speculation that the deal could be repriced or even scrapped, amid the impact of the credit crunch on financial markets.
The S&P/TSX composite index <.GSPTSE> was down 53.63 points, or 0.38 percent, at 14,089.94, with all but three of its 10 main sectors in a downturn. The index touched a session low of 14,017.75 soon after the open.
BCE stock, halted pending the company's announcement, only started trading at 10 a.m..
Weak prices for oil, gold and other metals helped take some money out of the resource space, with the energy and materials sectors giving up 1 percent and 1.1 percent, respectively.
The price of oil slipped below $145 a barrel, as investors awaited a response from Iran on proposals to resolve the dispute over its nuclear program.
Among the laggards, Canadian Oil Sands Trust
On the upside, BCE was the largest net gainer, helping push
the telecoms sector up 4.2 percent. Also in the group, Telus
Corp
Volume was expected to be light with U.S. markets closed for the July 4 holiday.
($1=$1.02 Canadian)
(Reporting by Leah Schnurr; editing by Janet Guttsman)
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