CANADA STOCKS-TSX climbs as rise in oil, gold prices spurs rebound

Tue Apr 8, 2014 5:00pm EDT
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* TSX rises 102.12 points, or 0.72 percent, to 14,372.45
    * Nine of the 10 main index sectors advance
    * Gold miners gain with bullion price

    By John Tilak
    TORONTO, April 8 (Reuters) - Canada's main stock index
rebounded on Tuesday after a surge in gold and oil prices drove
up shares of natural resource companies and helped boost
investor sentiment after three straight sessions of declines.
    The declines had been triggered by a sharp selloff in U.S.
markets, where investors have been pulling out of biotechnology
and technology sectors on fears prices might have run ahead of
themselves. Also weighing on stocks have been concerns about the
U.S. Federal Reserve's efforts to roll back its monetary
stimulus program and uncertainty about when the Fed might raise
interest rates.
     "The markets are without a catalyst at the moment, and
where the catalyst comes from will probably set the direction,"
said Youssef Zohny, portfolio manager at Stenner Investment
Partners, a subsidiary of Richardson GMP.
    "As we look to the whole year, we expect the Canadian market
to hold up pretty well, relative to the global equity markets,"
he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 102.12 points, or 0.72 percent, at
    The benchmark index, which is up about 5.5 percent in 2014,
has outperformed the S&P 500 index so far this year.
    "I don't expect the Canadian market to match any downside,
but I don't see our market charging ahead if the U.S. market is
heading south," said David Cockfield, managing director and
portfolio manager at Northland Wealth Management. "We don't have
any supercharged P/Es in the Canadian market."
    Nine of the 10 main sectors on the index were higher on
    Financials, the index's most heavily weighted sector, added
0.3 percent. Bank of Montreal climbed 0.8 percent to
    The energy sector benefited from higher oil prices. Suncor
Energy Inc advanced 2 percent to C$39.85, and Canadian
Natural Resources Ltd rose 0.9 percent to C$43.69.
    Shares of gold producers rose 2.2 percent, helped by a gain
in the price of the precious metal. Goldcorp Inc added
1.4 percent to C$27.53, and Barrick Gold Corp was up 2
percent at C$20.54.
    In corporate news, Osisko Mining Corp's chief
executive said it would be tough for Goldcorp to raise its bid
to take over Osisko by enough to trump a rival deal, and it is
more likely that the gold producer will walk away from the
transaction. Osisko shares jumped 2.8 percent to C$7.44.
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)