CANADA STOCKS-TSX touches two-week high after jobs data

    * TSX rises 73.10 points, or 0.53 percent, to 13,786.50 
    * Seven of the 10 main index sectors advance 
    * Baytex Energy drops after acquisition move 
    * Dorel tumbles after profit warning 
 
    By John Tilak 
    TORONTO, Feb 7 (Reuters) - Canada's main stock index climbed 
to its highest in two weeks on Friday, supported by gains in 
most major sectors as investors cheered a strong Canadian jobs 
report and shrugged off disappointing U.S. nonfarm payrolls 
data. 
    The Toronto market was up for a fourth straight session, 
following a major selloff on Monday, and managed to end the week 
higher. 
    Weighing on the index, shares of Baytex Energy Corp    
tumbled a day after the oil producer agreed to buy Australia's 
Aurora Oil & Gas Ltd    for C$2.6 billion ($2.4 billion) 
including debt.    
    The Canadian economy recorded its biggest employment gain 
since August in January, topping market estimates, and the 
unemployment rate fell, according to government figures. 
   
    The U.S. jobs report painted a mixed picture as employers 
hired fewer workers than expected in January, but the 
unemployment rate hit a new five-year low.    
    "Despite the (U.S.) headline numbers being weak, the fact 
that it was not a total disaster has helped to bring some 
confidence back to the market," said Elvis Picardo, strategist 
and vice president of research at Global Securities in 
Vancouver. 
    "It's more a function of investors viewing recent declines 
as a buying opportunity, coupled with the fact that there's been 
some stabilization in emerging markets," he added. 
    The Toronto Stock Exchange's S&P/TSX composite index 
   closed up 73.10 points, or 0.53 percent, at 13,786.50. 
    The benchmark Canadian index is up 1.2 percent this year, 
compared with a decline in the S&P 500   . 
    "As the world economy strengthens, the TSX will start to 
benefit," said Picardo, who sees double-digit gains in the index 
this year. "That core premise hasn't changed." 
    Seven of the 10 main sectors on the resource-heavy index 
were higher on Friday. 
    Financials, the index's most heavily weighted sector, were 
up 0.2 percent, with Royal Bank of Canada    adding 0.2 
percent to C$70.10.  
    The biggest jump came from gold-mining shares, which gained 
3 percent, lifted by a higher bullion price. Barrick Gold Corp 
   rose 2.1 percent to C$20.88, and Goldcorp Inc    
climbed 2.8 percent to C$28.24. 
    Energy shares felt the impact of Baytex's decline on Friday. 
The stock shed 4.6 percent to C$39.72, and elsewhere in the 
group Encana Corp    dropped 3.1 percent to C$20.31. 
    In corporate news, leisure-products company Dorel Industries 
Inc    said on Thursday that it will report a drop in 
fourth-quarter earnings. The stock slid 7.6 percent to C$36.66 
and showed the biggest percentage decline on the index. 
   
    ($1=$1.10 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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