CANADA STOCKS-TSX hits two-week high as Yellen remarks offer support
* TSX rises 79.27 points, or 0.59 percent, to 13,449.93 * Nine of 10 main index sectors advance * CGI Group jumps after posting results By John Tilak TORONTO, Nov 14 (Reuters) - Canada's main stock index advanced to a two-week high on Thursday after Federal Reserve head nominee Janet Yellen's indication of support for the U.S. central bank's monetary stimulus program helped boost almost every major sector. The market also digested news that the euro zone economy stagnated in the third quarter of the year, weighed by weakness in both France and Germany. Investors looking for signs of monetary policy direction from Yellen got a taste of it from her prepared remarks released on Wednesday. Yellen, President Barack Obama's nominee to lead the Federal Reserve, is expected to offer a strong defense on Thursday of the central bank's aggressive monetary easing before a Senate panel. "She is considered a dovish candidate, which I think is market-friendly," said Rick Hutcheon, president and chief operating officer at RKH Investments. "It's probably bullish for the market in the shorter term." The timing of the implementation of any pullback in stimulus could be less aggressive with Yellen at the helm, he added. The Toronto Stock Exchange's S&P/TSX composite index was up 79.27 points, or 0.59 percent, at 13,449.93, after reaching 13,457.33, its highest level since Oct. 31. Hutcheon sees the Canadian index climbing as resource stocks benefit from growth in the global economy. "The Canadian market and the Canadian economy (are) in a pretty good spot right now," he said. Nine of the 10 main sectors on the index were higher on Thursday. Financial shares added 0.4 percent, with Royal Bank of Canada rising 0.4 percent to C$71.33 and Toronto Dominion Bank gaining 0.5 percent to C$97.18. The materials sector, which includes mining stocks, climbed as gold-mining stocks surged 2.5 percent, reflecting a jump in the price of bullion. Goldcorp Inc was up 2 percent, at C$25.80. In corporate news, CGI Group Inc posted a better-than-expected adjusted profit for the fourth quarter, sending shares of the technology services company up 7 percent to C$40.25. Turquoise Hill Resources Ltd dropped 6.7 percent to C$4.32 after the miner said that it planned a rights offering, citing permitting issues that have delayed financing for the expansion of its Oyu Tolgoi copper-gold mine in Mongolia run by Rio Tinto.
© Thomson Reuters 2016 All rights reserved.