TSX closes up, breaks five-day slide as miners gain

Wed Jun 15, 2016 5:26pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's benchmark stock index closed higher on Wednesday after five days of declines, with miners and other materials stocks leading a broad but subdued rebound as the U.S. Federal Reserve hinted at a less aggressive outlook for interest rates.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 39.22 points, or 0.28 percent, at 13,923.45, lifting it off a near one-month low.

"Essentially everything is flat except for materials," said Manash Goswami, a portfolio manager at First Asset Investment Management Inc, pointing to a dovish Fed as supportive for gold.

"There is also a lot of uncertainty coming up with the Brexit vote next week," he said, referring to a June 23 British vote on whether to leave the European Union.

Worries that Britain, the world's fifth-largest economy, could quit the EU have dominated markets this week and driven investors towards safe-haven assets such as gold.

He said that he likes defensive sectors such as utilities, telecoms and consumer staples given a tepid economic growth outlook.

The most influential gainers on the day included Barrick Gold Corp (ABX.TO: Quote), which jumped 4.3 percent to C$26.52, and Goldcorp Inc (G.TO: Quote) lost 3.6 percent to C$23.55.

The materials group, which includes precious and base metals miners and fertilizer companies, gained 2.8 percent, with Teck Resources Ltd TCKb.TO up 5.3 percent at C$14.91 and First Quantum Minerals Ltd (FM.TO: Quote) adding 5.8 percent to C$8.64.   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch