CANADA STOCKS-TSX flat as Federal Reserve meets

Wed Sep 12, 2012 11:21am EDT
 
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* TSX up 10.78 points to 12,231.23
    * Seven of 10 sectors in positive territory

    TORONTO, Sept 12 (Reuters) - Canada's main stock index was
little changed on Wednesday, with investors shifting their focus
from a positive German court ruling on the euro zone's new
bailout fund to caution over the U.S. Federal Reserve's meeting.
    The Fed looks set to announce a third round of bond
purchases after its meeting wraps up o n T hursday, as it tries to
drive borrowing costs even lower and breathe more life into an
economy that is not growing quickly enough to reduce
unemployment. 
    Analysts say high hopes are priced in and any disappointing
words from the Fed could result in pronounced sell-offs.
    "The market's been climbing the proverbial wall of worry and
it's seen cautiousness all the way along," said Paul Hand,
managing director at RBC Capital Markets.
    Among the top advancers, Cenovus Energy added 1.6
percent to C$34.34, and Agrium jumped 2.5 percent to  
C$101.39.
    Among the laggards, Potash Corp lost 1.3 percent to C$41.15
and Barrick Gold was down 1 percent to C$38.03. 
    The 19-commodity Thomson Reuters-Jefferies CRB index 
was off 0.1 percent.  
    By 11:05 a.m. (1505 GMT), the Toronto Stock Exchange's
S&P/TSX composite index had given up most of the day's
early gains and was up 10.78 points, or 0.09 percent, at
12,231.23. Seven of the 10 sectors were still stronger.
    Rogers Communications was the most influential
name on the way up, climbing 2.4 percent to C$40.97. Bank of
America Merrill Lynch analyst upgraded the telecom company to
"buy" from "neutral."
    Germany's Constitutional Court said the country can ratify
the euro zone's new rescue fund and budget pact as long it can
guarantee there will be no increase in German financial exposure
to the bailout fund without parliament's approval.
 
    The fund is seen potentially going a long way to solving the
region's debt crisis, and news of the court ruling gave a lift
to equities, commodities, riskier currencies and bonds of
heavily indebted euro zone nations. 
    In individual company news, Niko Resources tumbled
nearly 30 percent to C$9.60 and Petrominerales lost
almost 14 percent to C$8.29, after both oil and gas producers
disappointed investors with drilling updates from their
respective Indonesian and Colombian operations, prompting
analyst downgrades.
    Dollarama was down 0.8 percent to C$58.85, despite
reporting a jump in quarterly profit.