CANADA STOCKS-TSX pares gains in volatile post-Fed trading
* 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 week. "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 volatility." 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.
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