RTTNews - Bay Street stocks turned into positive territory on Friday, erasing earlier losses and extending yesterday's rally. Financials are leading the gainers on Bay Street.

The S&P/TSX Composite Index has climbed 19.68 points or 0.18% to 10,694.91. If the gains hold, the index will extend a six-week closing high.

Financial stocks are up 1.7%. Scotiabank (BNS.TO) has added 3.35% and the Bank of Montreal (BMO.TO) has jumped 3%.

Consumer staples stocks are down 2.15% led by a 2.5% drop for Loblaw Companies (L.TO). Canada's largest food distributor announced it has reached a deal to acquire T&T Supermarket for C$225 million.

Loblaw also posted second quarter net income of C$193 million or C$0.70 per basic share, compared to C$140 million or C$0.51 per basic share in the prior year period.

In other corporate news, Nexen (NXY.TO) is up 0.8% after the company announced that it is reviewing strategic alternatives for its natural gas and power marketing businesses, which may include the sale of all or part of these businesses.

TransAtlantic Petroleum (TNP.TO) has risen 3.1% after the company announced that it has acquired Energy Operations Turkey for total consideration of $7.75 million, including a $1.5 million promissory note payable in one year.

DHX Media Ltd (DHX.TO) has declined 1.4% after the company said that DHX distribution subsidiary DECODE Enterprises licensed six of its television series to Ireland's TG4.

Pacific Rim Mining Corp. (PMU.TO) soared 20% after the company reported an adjusted full-year loss of US$0.05 compared to a loss of US$0.11 per share prior year.

Easyhome (EH.TO) has dropped 7.7% after the company announced the resignation of Chris Fregren as its senior vice president and chief financial officer, effective August 16, 2009.

Sierra Minerals (SIM.TO) has surged 20% after the company reported that it has produced 5,447 ounces of gold in second-quarter ended June 30, 2009 at its Cerro Colorado mine in Sonora, Mexico. Sierra also announced the appointment of Andres Tinajero as new Chief Financial Officer.

In economic news, Finance Minister Jim Flaherty said the government's debt was $7.5 billion in April and May, the first two month of the fiscal year.

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