CANADA STOCKS-Remarks by Fed's Yellen take TSX to two-week high

Thu Nov 14, 2013 4:47pm EST
 
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* TSX rises 60.72 points, or 0.45 percent, to 13,431.38
    * Eight of 10 main index sectors advance
    * CGI Group jumps after posting results

    By John Tilak
    TORONTO, Nov 14 (Reuters) - Canada's benchmark stock index
reached a two-week high on Thursday as remarks from Janet
Yellen, nominee for the post of Federal Reserve chair, confirmed
her support for the U.S. central bank's easy monetary policy and
boosted investor sentiment.
    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 and testimony before the Senate Banking Committee
on Thursday.
    Yellen indicated she would implement the Fed's ultra-easy
monetary policy until officials were confident the economic
recovery was robust and job creation was sustainable.
 
    "It's maintaining the status quo, at present being not only
an accommodative Fed, but also a Fed that's going to engage in
quantitative easing," said Stephen Wood, chief market strategist
for North America, at Russell Investments.
    "There's no radical policy shift, maybe a greater emphasis
on the current policy," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 60.72 points, or 0.45 percent, at 13,431.38,
after earlier touching 13,460.79 - its highest since Oct. 31.
    After a sluggish performance in the first half of the year,
the index has rebounded strongly in the past month.
    Longer term, the resource-driven Canadian market will
benefit from the recoveries in the economies of the United
States, Europe and China, Wood said, adding: "As global demand
improves, the resources will participate."
    Eight of the 10 main sectors on the index were higher on
Thursday.
    Financial shares added 0.2 percent, with Bank of Nova Scotia
 climbing 0.9 percent to C$65.45.
    The materials sector, which includes mining stocks, climbed
as gold-mining stocks surged 2.3 percent, reflecting a jump in
the price of bullion.
    Goldcorp Inc was up 2.4 percent, at C$25.90.
    In corporate news, CGI Group Inc posted a
better-than-expected adjusted profit for its fourth quarter,
sending shares of the technology services company up 4.3 percent
to C$39.24. 
    Turquoise Hill Resources Ltd dropped 7.8 percent to
C$4.27 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.