CANADA STOCKS-TSX hits two-week high after Yellen comments

Tue Feb 11, 2014 11:13am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX rises 67.22 points, or 0.49 percent, to 13,861.40
    * Nine of the 10 main index sectors advance
    * BlackBerry falls after BBM executive leaves

    By John Tilak
    TORONTO, Feb 11 (Reuters) - Canada's main stock index hit a
two-week high on Tuesday after U.S. Federal Reserve Chair Janet
Yellen confirmed the process of winding down the Fed's stimulus
program was on track.
    Yellen, in her first public remarks as Fed chair, noted that
the U.S. labor market recovery was "far from complete" and said
there was a need to keep an eye on a broad range of labor market
indicators, but in comments soothing to markets she stressed
continuity with the policies of her predecessor, Ben Bernanke.
    The benchmark Canadian index was up for a sixth straight
session, and appeared to be showing signs of stabilizing after a
volatile phase triggered by turmoil in emerging markets.
    "There seems to be a certain amount of calm," said Michael
Newton, a director of wealth management and portfolio manager at
    "People are looking across the next couple of months and
realizing there's not a single identifiable macro event that
they see on the horizon," he said. "There's a sense of
complacency or an 'all clear' for the foreseeable future." 
    Investors were warming up to the new Fed chair, Newton
added. "With Yellen, sentiment has quickly changed, with the
realization that she is supportive of the markets and supportive
of keeping rates low."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 67.22 points, or 0.49 percent, at 13,861.40
after rising as high as 13,886.
    The index has outperformed the S&P 500 so far this
year but Newton expects Canadian equities to trail the U.S.
stock market in 2014 because of the uncertainty surrounding
growth in China, a major market for Canadian commodities.
    Nine of the 10 main sectors on the index were higher on
    Financials, the index's most heavily weighted sector, added
0.5 percent. Royal Bank of Canada rose 0.6 percent to
C$70.38, and Bank of Nova Scotia climbed 0.9 percent to
    Energy shares advanced 0.5 percent, with the sector the
receiving some support from a gain in the price of Brent crude
oil. In the group, Canadian Natural Resources Ltd 
climbed 0.9 percent to C$37.71.
    Shares of gold-mining companies surged 2 percent, a
reflection of a jump in the price of bullion. Goldcorp
Inc was up 2 percent, at C$29.32.
    In corporate news, BlackBerry Ltd said on Monday
that Andrew Bocking, the executive in charge of its BBM instant
messaging business, has left the company. The stock was down 1.7
percent at C$10.73 on Tuesday.