TSX gains from jump in gold miners, Enbridge

Wed Nov 6, 2013 5:07pm EST
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index rose on Wednesday as investors speculated about global central bank moves and as gold-mining shares climbed with the price of bullion.

The market also analyzed earnings statements from several of the country's major energy players, including Enbridge Inc (ENB.TO: Quote) and Talisman Energy Inc TLM.TO, as well as a bullish report from auto parts maker Magna International Inc (MG.TO: Quote).

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 18.70 points, or 0.14 percent, at 13,380.41.

The index has jumped nearly 5 percent in the past month, and six of its 10 major index sectors were higher on Wednesday.

Market focus was on whether the European Central Bank will cut interest rates this week, while anticipation grew that the U.S. Federal Reserve again will put off plans to scale back its monetary stimulus program.

Top Fed officials have been saying in recent days the U.S. central bank should not make changes to the program until there's more evidence to suggest that the world's biggest economy is on a firmer footing.

"The Fed is in a conundrum, given that they need stronger economic growth to reduce their easing," said Youssef Zohny, portfolio manager at Stenner Investment Partners, a unit of Richardson GMP. "Some of the economic data lately has been maybe a bit disappointing."

"In the short term, there could be some volatility," he added. "But in the medium term, there's more value in Canada than in the United States."   Continued...

 
An electronic board displays the midday TSX index in Toronto February 16, 2011. REUTERS/Mark Blinch