CANADA STOCKS-TSX pares gains in volatile post-Fed trading

Fri Jun 21, 2013 1:26pm EDT
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* TSX up 26.78 points, or 0.22 percent, at 11,995.35
    * Seven of 10 main index sectors rise
    * Index on track to drop more than 1 percent on the week

    By Solarina Ho
    TORONTO, June 21 (Reuters) - Canada's main stock index rose
but was off its highs on Friday, with energy stocks falling in
line with weaker commodity prices. 
    Investors mostly returned to equities after a two-day
selloff triggered by concern about the U.S. Federal Reserve's
plan to slow its stimulus program. But trading was volatile and
the index was still on track to drop more than 1 percent for the
    "We've been used to (the volatility). A fact of life for
markets today. We're going into a new environment and no one
likes uncertainty," said John Ing, president of Maison
Placements Canada.
    "The reality has set in that tighter money, higher rates are
in the offing. Unfortunately, we've not been able to address
some of the problems which prompted the easing, therefore, the
    Energy stocks were down 0.2 percent, tracking weaker oil
prices. The group's decline was led by Canadian Natural
Resources, which fell 1.1 percent to C$29.30. Suncor
Energy was trading at C$30.72 and Cenovus Energy Inc.
 was trading at C$29.62. Both were also among the
index's biggest drags.
    The financial group, which was the main mover in Friday's
push higher, was up 0.2 percent. Weakness among insurance
companies offset gains by the country's big banks. Sun Life
Financial slid 3 percent to C$29.96, while Manulife
Financial Corp. gave back 1.55 percent to C$16.54.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 26.78 points, or 0.22 percent, at 11,995.35 in
early afternoon trading. It traded as high as 12,067.54 and at
one point dipped to 11,935.72. Seven of the index's 10 main
groups were positive.
    "Our sense is the market is very jittery, very skittish, and
as a consequence they're looking more toward the short term,"
said Irwin Michael, a portfolio manager at ABC Funds. "On
balance our sense is that our market is a little oversold. The
latter part of yesterday was just pandemonium."
    Heavyweight gold mining stocks Goldcorp Inc. and
Barrick Gold Corp. both added more than 1 percent even
though bullion was headed for its sharpest weekly drop in nearly
two years. 
    Telecoms companies were also well-represented at the top of
the table, with BCE Inc. up 1.3 percent at C$43.70,
Rogers Communications Inc. up 2.7 percent at C$46.00,
and Telus Corp. gaining 1.8 percent to C$34.06. The
overall group was up 1.7 percent.