CANADA STOCKS-Fed hopes boost TSX, offset BlackBerry gloom

Fri Jun 28, 2013 11:25am EDT
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* TSX rises 146.76 points, or 1.22 percent, to 12,152.54
    * Nine of 10 main sectors higher
    * BlackBerry tumbles 25 percent after results
    * Gold-mining shares jump 5.6 percent as bullion climbs

    By John Tilak
    TORONTO, June 28 (Reuters) - Canada's main stock index
advanced on Friday as hopes for continued U.S. Federal Reserve
stimulus measures fueled widespread gains and helped offset a
steep decline in BlackBerry shares after the smartphone
maker reported disappointing results.
    Despite the gain on the last trading day of the second
quarter, the index looked set to record its biggest quarterly
decline in a year.
    BlackBerry shares fell 25 percent after its quarterly report
offered few signs of a long-promised turnaround. The company
posted an unexpected operating loss and gave few details on
sales of its make-or-break new line of smartphones, and did not
signal a return to profit in the current quarter.
    Giving the market support, data showed Japan's consumer
prices stopped falling in May and labor demand reached its
strongest level in five years. 
    Investors also continued to take heart from a Federal
Reserve official's comments on Thursday that the U.S. central
bank's asset purchases would be more aggressive than it outlined
last week if U.S. economic growth and the labor market are
weaker than expected.
    "The Fed and (Fed Chairman) Ben Bernanke are starting to see
some shoots of growth happen," said Arthur Salzer, executive
director and chief executive of Northland Wealth Management.
    "They will moderate (the stimulus rollback) and slowly begin
to implement it," he added. "The markets are starting to come to
grips with that."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 146.76 points, or 1.22 percent, at 12,152.54.
    Nine of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, added
3.7 percent. Gold mining shares jumped 5.6 percent as the price
of bullion climbed. 
    Goldcorp Inc gained 5.9 percent to C$25.25, and
Barrick Gold Corp rose 5.5 percent to C$16.43.
    Financials, the index's most heavily weighted sector, were
up 0.7 percent. Toronto-Dominion Bank rose 1.1 percent
to C$84.82.
    BCE Inc shares climbed 3.3 percent to C$43.33 after
Canada's broadcast regulator approved a C$3 billion ($2.86
billion) bid by the telecoms company to take over Astral Media
    BlackBerry's drop to C$11.31 caused a 6.7 percent decline in
the information technology sector.