CANADA STOCKS-TSX nears three-year high after Canadian Natural deal

    * TSX rises 73.94 points, or 0.53 percent, to 14,151.41 
    * Six of 10 main index sectors advance 
    * Canadian Natural jumps 4.6 percent after acquisition move 
    * Sherritt drops after posting loss, cutting dividend 
 
    By John Tilak 
    TORONTO, Feb 19 (Reuters) - Canada's main stock index hit 
its highest in almost 3 years on Wednesday as Canadian Natural 
Resources Ltd    jumped after the company said it would 
acquire some natural gas assets, offsetting weak economic data 
from the United States. 
    Devon Energy Corp    said it would sell some 
liquids-rich natural gas assets to Canadian Natural, Canada's 
No. 1 independent oil producer, for about $2.8 billion, a move 
that helped lift shares across the energy sector. 
   
    Data showing that U.S. housing starts recorded their biggest 
drop in almost three years in January failed to dent the 
positive mood.    
    The Toronto market recorded its 11th straight daily gain, 
helped by a rebound in investor sentiment and a pickup in the 
natural resource sectors. 
    "The sentiment for equities is pretty good," said Matt 
Skipp, president of SW8 Asset Management. "But you're going to 
see more volatility this year as markets in the developed world 
have clearly become fully priced." 
    "The Canadian Natural deal has given people confidence in 
the oil patch," he added. "With one of the smartest operators 
making a significant acquisition, it gives a lot of credibility 
to pricing going forward." 
    The Toronto Stock Exchange's S&P/TSX composite index 
   was up 73.94 points, or 0.53 percent, at 14,151.41. 
    Six of the 10 main sectors on the index were higher. 
    Shares of energy companies climbed 0.9 percent. Canadian 
Natural's 4.6 percent jump, to C$40.98, was the highlight in the 
group. Suncor Energy Inc    added 0.6 percent to C$36.83. 
    The materials sector, which includes mining stocks, gained 
0.9 percent. Potash Corp    rose 1.3 percent to C$37.26, 
and Barrick Gold Corp    climbed 1.9 percent to C$22.93. 
    Financials, the index's most heavily weighted sector, 
advanced 0.6 percent, with Royal Bank of Canada    adding 
0.6 percent to C$71.87. 
    In other company news, Sherritt International Corp    
posted a quarterly loss and slashed its quarterly dividend. The 
stock shed 9 percent to C$3.12.    
     
 
 (Editing by Nick Zieminski) 
 ((john.tilak@thomsonreuters.com)(1-416-687-7918)(Reuters 
Messaging: john.tilak.reuters.com@reuters.net)) 
  
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