CANADA STOCKS-Economic data propels TSX to 2-1/2-year high

    * TSX rises 59 points, or 0.43 percent, to 13,831.58 
    * Nine of the 10 main index sectors advance 
    * Bombardier drops on CSeries delay 
    * Saputo climbs on progress in battle for Warrnambool 
 
    By John Tilak 
    TORONTO, Jan 16 (Reuters) - Canada's main stock index 
advanced to its highest in 2-1/2 years on Thursday after upbeat 
data from the United States, Europe and Japan suggested strength 
in the global economic recovery, driving gains in almost every 
major sector. 
    Investors tracked a report showing that the number of 
Americans filing new claims for unemployment benefits dropped 
for a second week last week, while separate data showed U.S. 
consumer prices posted their biggest gain in six months in 
December.     
    European car sales in December gained the most in four 
years, an industrial group said. In Japan, core machinery orders 
shot up to a five-year high in November.    
   
    Partly offsetting the mood, Bombardier Inc    dropped 
7.7 percent after the plane maker said it will delay putting its 
new narrow-body CSeries jet into commercial service by at least 
nine months, citing a longer-than-expected test phase. 
   
    After recording a 9.6 percent gain in 2013, the Toronto 
Stock Exchange's benchmark index is up about 1.5 percent this 
year. 
    Investors said the Toronto market, which has gained in seven 
of the last eight sessions, was starting to benefit from a 
rotation of funds from bonds to equities. 
    "There's been a swing in money flow over the last 12 months 
that is gaining momentum," said Julie Brough, vice president at 
Morgan Meighen & Associates.  
    "People frustrated by the fact that last year their bond 
funds either didn't make any money or lost money are trying to 
overcome their fear of equity markets," she added. 
    The Toronto benchmark S&P/TSX composite index    
closed up 59 points, or 0.43 percent, at 13,831.58, its 
strongest level since mid-2011.  
    "I'm generally positive on the TSX," said Colin Cieszynski, 
senior market analyst at CMC Markets Canada. "If we start to see 
the global economy improve, and demand for resources improve, 
that could certainly help Canada." 
    Nine of the 10 main sectors on the index were higher on 
Thursday. 
    Financials, the index's most heavily weighted sector, added 
0.2 percent. Royal Bank of Canada    advanced 0.4 percent 
to C$71.36, and Toronto-Dominion Bank    climbed 0.2 
percent to C$97.81. 
    The materials sector, which includes mining stocks, rose 1 
percent, with Teck Resources Ltd    jumping 4.4 percent 
to C$28.51. 
    In corporate news, Australia's Bega Cheese Ltd    said 
it will sell its 18.8 percent stake in Warrnambool Cheese and 
Butter Factory Co Holdings Ltd    to Saputo Inc   , 
which has been seeking control of Warrnambool. The news drove 
Saputo shares up 1.5 percent to C$51.68.    
    ($1=$1.09 Canadian) 
 
 (Editing by Peter Galloway) 
 ((john.tilak@thomsonreuters.com)(1-416-687-7918)(Reuters 
Messaging: john.tilak.reuters.com@reuters.net)) 
  
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