November 14, 2016 / 10:27 PM / 10 months ago

CANADA STOCKS-TSX bounces as gold shines, rate-sensitive stocks still drag

* TSX up 43.04 points, or 0.3 percent, to 14,598.45

* Six of the TSX’s 10 main groups rise

TORONTO, Nov 14 (Reuters) - Canada’s main stock index rebounded on Monday as bank stocks recouped earlier losses, and gold miners bucked weaker bullion prices.

The most influential movers on the index included Toronto Dominion Bank, which rose just over 2 percent to C$62.92, and Manulife Financial, which climbed 3.3 percent to finish at C$23.16.

Gains for financials came as global bond yields surged, with investors betting that U.S. President-elect Trump will pursue policies that will trigger higher inflation. The overall financials group, which accounts for just over a third of the index’s weight, was up 0.8 percent.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 43.04 points, or 0.3 percent, to 14,598.45.

Six of the index’s 10 main groups advanced.

Among gold firms, Goldcorp rose 1.7 percent to C$18.11, while Barrick Gold Corp pared sharp losses earlier to end 1 percent weaker at C$19.86.

Spot gold hit a five-month low as the dollar and U.S. Treasury yields strengthened on expectations that Trump will boost spending.

“Gold has been Trumped, so to speak. Rather than go up, it has been going down,” said John Ing, president of Maison Placements Canada. But Ing expects the deficit to remain substantial.

“Debt piled on more debt ... And the geopolitical environment hasn’t changed, so all that will be good for the gold price.”

The overall materials group, which includes precious and base metals miners and fertilizer companies, recovered from earlier declines to close 0.6 percent higher.

Defensive sectors, such as utilities, telecom and consumer staples, which have benefited from a low interest rate environment, also lost ground.

The consumer staples group fell 0.7 percent, with Alimentation Couche Tard Inc down 1.3 percent at C$62.53. Cott Corp retreated 2.7 percent to C$16.54.

Amaya Inc’s former chief executive officer, David Baazov, has offered to buy the Canadian online gambling company in a deal valued at about C$3.48 billion.

Its shares jumped 14.4 percent to C$20.98.

Gold Fields Ltd said late on Sunday that it had made three successive takeover proposals jointly with Silver Standard Resources Inc for Canadian miner Kirkland Lake Gold Inc, confirming a Reuters report on Friday. .

Kirkland Lake’s shares rose 5.6 percent to C$8.49.

Energy stocks firmed 1.2 percent in tandem with steady oil prices.

Oil prices rebounded from three-month lows on a report saying that OPEC members were seeking to resolve their differences on a deal to cut production ahead of a meeting later this month. (Reporting by Solarina Ho, additional reporting by Fergal Smith; Editing by Lisa Shumaker)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below