Canada stocks seen grinding higher in 2013: Reuters poll

Thu Dec 13, 2012 12:53pm EST
 

By Alastair Sharp

TORONTO (Reuters) - Canadian stocks are set to rise next year, as recovering Chinese growth is expected to boost natural resource companies and deadlocked U.S. budget talks should be resolved, a Reuters poll of analysts predicted.

The median forecast in poll of 30 market strategists taken in the past week is for the Toronto Stock Exchange's benchmark S&P/TSX composite index .GSPTSE index to climb to 13,000 by the end of next year.

It is expected to rise to 12,600 by mid-2013, not far above the 12,353 at which it closed on Wednesday and well below the 13,225 mid-year forecast in a poll taken in September when major central banks were stepping up efforts to boost growth.

But markets stumbled as U.S. Republicans and Democrats failed to gain ground in budget talks aimed at averting a "fiscal cliff" of steep tax hikes and spending cuts set for the end of the year.

"We believe the United States will come to terms with their fiscal cliff and the markets will rally marginally on the solution," said Arthur Salzer, chief executive of Northland Wealth Management.

"This should be positive for financial stocks and a slight negative for areas such as the gold miners."

Estimates were in a wide range, from 11,225 to 15,000 for mid-2013, and from 10,550 to 14,000 for the end of next year.

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A Bay Street sign is seen in the heart of the financial district in Toronto, August 17, 2009. REUTERS/Mark Blinch