By Johann M Cherian Aug 12 (Reuters) - Canada's main stock index rose on Friday as the country's two main telecoms firms made headway with their merger deal, but gains were capped on worries over "soft landing" challenges for the economy. The spinoff comes at a time when Canada's antitrust agency has kept the Rogers' C$20 billion acquisition of Shaw on hold since May, citing competition concerns. Analysts are saying that the TSX is seen as an inflation hedge, given the cyclical nature of its composition, and are overweight on sectors such as financials, energy and materials.