Canadian stocks seen climbing on global growth hopes: Reuters poll

Tue Jun 18, 2013 11:26am EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's resources-heavy stock market, which has struggled to gain traction in 2013, is expected to kick into gear in the second half of the year as the global economy rebounds, a Reuters poll found.

The median forecast in a poll of 40 market strategists, taken in the past week, shows the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE is expected to end the year at 12,850, up 5 percent from Monday's close of 12,288.90.

It will then rise to 13,500 by mid-2014 - a level not seen since mid-2011.

The year-end projection was scaled down from the 13,450 forecast in a March poll as recent sell-offs wiped out the market's early 2013 gains.

But the more recent poll showed analysts forecast a late recovery in the sagging market, which has trailed global peers including Wall Street.

The Toronto market has shed about 1 percent this year, while the S&P 500 .SPX has gained about 15 percent.

"Overall it's really going to boil down to the global growth story," said Craig Fehr, Canadian market strategist at Edward Jones. "We're starting to see some semblance of stabilization on the global stage, in terms of economic growth."

The TSX will benefit from export demand as confidence builds "around the ability for China to stimulate growth and for Europe to pull itself out of recession," he added.   Continued...

 
People attend a market open ceremony for the Toronto Stock Exchange at the TSX Broadcast Centre in Toronto June 20, 2008. REUTERS/Mark Blinch