July 2 (Reuters) - Canada's main stock index rose in early trading on Tuesday, as the heavy-weight financial sector gained, but shrinking factory activity data in June kept investors from making bigger bets.
* At 9:54 a.m. ET (1354 GMT), the Toronto Stock Exchange's S&P/TSX Composite index was up 28.11 points, or 0.17%, at 16,410.31.
* The financials sector edged up 0.8%, with Manulife Financial Corp leading the charge with its 1.7% rise.
* Six of the index's 11 major sectors were higher.
* Capping gains was data which showed Canadian manufacturing activity contracted for the third consecutive month in June, as a measure of production fell to a three-and-a-half year low.
* Investors were also on edge due to a clutch of discouraging manufacturing surveys in the past 24 hours from around the world that rekindled fears of a global economic slowdown.
* The energy sector dropped 0.7% as U.S. crude prices were down 1.1%, while Brent crude lost 0.9%.
* The materials sector, which includes precious and base metals miners, reversed earlier gains and fell 1.8%.
* On the TSX, 115 issues were higher, while 119 issues declined for a 1.03-to-1 ratio to the downside, with traded volumes touching 25.41 million shares.
* The largest percentage gainer on the TSX was Eldorado Gold , which jumped 4.1%, followed by shares of Dollarama Inc that rose 3.9%.
* Semafo Inc fell 6.2%, the most on the TSX, followed by Oceanagold Corp, which declined 4.8%.
* The most heavily traded shares by volume were Prometic Life Sciences, Barrick Gold and Encana Corp .
* The TSX posted three new 52-week highs and four new lows.
* Across all Canadian issues, there were 17 new 52-week highs and 14 new lows, with total traded volumes touching 43.48 million shares. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel)