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The TMX Group logo, home of the TSX, is shown in Toronto on June 28, 2013. THE CANADIAN PRESS/Aaron Vincent Elkaim

The Canadian Press

The Toronto stock market closed higher Tuesday with the resource sectors positive as buyers started to nibble at companies that have sustained a severe mauling because of a steep drop in oil prices and other economic concerns.

The Toronto Stock Exchange's S&P/TSX composite index unofficially closed up 51.56 points, or 0.36 per cent, at 14,195.73. Seven of the 10 main sectors on the index ended higher.

The Canadian dollar was up 0.32 of a cent at 87.41 cents (U.S.).

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Worries that last week's positive jobs creation data could result in the U.S. Federal Reserve moving sooner than expected to raise interest rates punished most U.S. indexes.

The S&P 500 slipped 0.49 points, 0.02 per cent, to 2,059.82, the Dow Jones Industrials fell 51.28 points, or 0.29 per cent, to 17,801.20 while the Nasdaq gained 25.77 points, or 0.54 per cent to 4,766.47.

Oil prices rose 77 cents to $63.82 (U.S.) a barrel after tumbling almost $3 a barrel Monday in the wake of weak trade data from China and a report from Morgan Stanley that suggested prices for Brent crude, an international benchmark, could fall to as low as $43 a barrel next year.

The TSX energy sector closed up 1.13 per cent Tuesday — but the component, which makes up 23 per cent of the TSX, is still under water almost 20 per cent year to date as markets try to work out a huge imbalance in supply and demand.

"The energy space is almost looking like capitulation," observed Paul Vaillancourt, executive vice-president, private wealth, at Fiera Capital in Calgary.

"When we see days like this, they're expected. Never waste an opportunity and in this situation here . . . fear and panic have resulted in some pretty indiscriminate selling."

Canadian energy companies continue to be impacted by plunging oil prices. Baytex Energy is reducing its monthly dividend by more than half to 10 cents a month. The company is also cutting 2015 spending plans by 30 per cent from earlier estimates as well as its production ranges. Baytex shares gained 44 cents to $16.90 (Canadian).

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Another bright spot on the TSX was Talisman Energy Inc., which said several parties, including Spanish energy company Repsol, have approached it about potential deals. Talisman and Repsol held inconclusive talks during the summer but the Calgary company's shares have plunged about 60 per cent since then, making it a more attractive takeover target. Its shares rose 11.85 per cent to $4.81.

Miners also provided some lift to the TSX, with the gold sector ahead 4.4 per cent as February bullion gained $37.10 to $1,232 (U.S.) an ounce.

The base metals sector was up 2.25 per cent as March copper rose four cents to $2.93 a pound.

Elsewhere, Hudson's Bay Co. had a quarterly net loss of $13-million or seven cents a share and "normalized" earnings of $116-million, both improvements from the same time last year. Retail sales nearly doubled to $1.91-billion from $984-million a year earlier and its shares edged up 51 cents to $24 (Canadian).

Financials led decliners, down 0.3 per cent. Financials have been steadily sliding since last week after the big banks delivered a mixed bag of earnings and warned of a challenging 2015. Investors have been cutting their exposure to banks because of worries that falling oil will negatively impact economic growth and cut back on bank lending.

AGF Management Ltd. was the major drag on the sector Tuesday, down 14.65 per cent to $8.28 after the company said it would cut its quarterly dividend by 70 per cent to eight cents a share as of the first quarter of 2015.

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With files from Reuters

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