CANADA STOCKS-TSX hits 2-1/2 year high as jobs data lifts commodities

 (Adds details, comments from fund manager; updates prices) 
    * TSX rises 118.11 points, or 0.87 percent, to 13,747.52 
    * Nine of the 10 main index sectors advance 
    * Saputo up after company extends offer for Warrnambool 
    * CGI Group drops after losing Obamacare contract 
 
    By John Tilak 
    TORONTO, Jan 10 (Reuters) - Canada's main stock index 
advanced to its highest in about 2-1/2 years on Friday as 
disappointing North American jobs data  proved to be a boon to 
commodity prices, helping drive up shares of natural resource 
companies. 
    Prices of gold, oil and other commodities gained on 
speculation that soft U.S. employment figures for December would 
push the U.S. Federal Reserve to slow the wind-down of its 
monetary stimulus program.  GOL/   O/R  
    It was the benchmark index's biggest single-day percentage 
jump in more than three weeks and its fourth straight daily 
gain. 
    After trailing its U.S. peers in 2013, the Canadian index 
appeared to be gathering momentum this week. It outperformed the 
S&P 500    on Friday.  
    "We'll probably keep pace with the United States in 2014," 
said Philip Petursson, managing director, portfolio advisory 
group, at Manulife Asset Management. "Whether we'll outpace the 
U.S. is the real question." 
    "Earnings will drive the market this year," he added. "The 
prospects (for Canadian companies) are looking vastly improved 
over 2013."  
    The Toronto Stock Exchange's S&P/TSX composite index 
   closed up 118.11 points, or 0.87 percent, at 
13,747.52, after rising as high as 13,750.66, its strongest 
level since mid-2011. 
    The index ended the week 1.5 percent higher.  
    Government data showed the Canadian economy lost 45,900 jobs 
last month, resulting in a higher unemployment rate and raising 
expectations that the Bank of Canada might trim interest rates. 
   
    The United States recorded the weakest jobs growth in about 
three years in December, with some indication that severe cold 
weather had had an impact.    
    "It's a double whammy," said Shailesh Kshatriya, associate 
director for client investment strategies at Russell Investments 
Canada.  
    "It was a horrible number. There's no way to sugarcoat it," 
he said of the Canadian jobs report. The data, coupled with 
sluggish trade numbers and high household indebtedness, points 
to a slight weakening of the Canadian economy, he added. 
    Nine of the 10 main sectors on the index were higher on 
Friday. 
    With the bullion price up 1.3 percent, gold-mining shares 
jumped 3.7 percent. Goldcorp Inc    added 4 percent to 
$25.29, and Barrick Gold Corp    advanced 3 percent to 
C$19.82. 
    Shares of energy producers were up 1.3 percent, reflecting a 
1.2 percent rise in the price of U.S. crude oil. Canadian 
Natural Resources Ltd    rose 3.1 percent to C$36.19, and 
had the biggest positive influence on the index. Suncor Energy 
Inc    gained 1.8 percent to C$37.96. 
    In company news, Saputo Inc    extended its offer for 
Australia's Warrnambool Cheese and Butter Factory Holdings Co 
  . Saputo's stock firmed 1.7 percent to C$49.85. 
    Shares of IT services provider CGI Group Inc    
dropped 2.5 percent to C$34.37 after news emerged that its 
contract with the U.S. government for the Obamacare website 
HealthCare.Gov would end next month.    
    ($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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