CANADA STOCKS-TSX perks up after Fed raises stimulus hopes

Fri Aug 26, 2011 5:08pm EDT
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   * TSX ends up 43.20 points, or 0.35 percent, at 12,327.51
 * Eight of 10 main sectors stronger
 * Bernanke offers no additional U.S. stimulus measures
 * TSX ends week 2.7 percent higher
 (Adds details, quotes)
 By Claire Sibonney and Trish Nixon
 TORONTO, Aug 26 (Reuters) - Toronto's main stock index
rebounded to end higher on Friday after a speech by Federal
Reserve Chairman Ben Bernanke left the door open for further
U.S. stimulus measures next month.
 Bernanke stopped short of signaling more moves to boost
growth during a speech at a central bank conference in Jackson
Hole, Wyoming, but he said the Fed's policy panel would meet
for two days in September instead of the scheduled one day to
discuss any additional stimulus. [nN1E77O1LR]
 "He's not a magician. He's just helicopter Ben. He's
promising to land in his helicopter with emergency rations, but
we haven't seen any yet," Michael Smedley, chief portfolio
manager at Morgan Meighen & Associates.
 Most of the TSX's 10 main sectors ended higher, though
financials - the most heavily weighted group - dragged the TSX
to underperform its U.S. counterparts after disappointing
results from Royal Bank of Canada (RY.TO: Quote), the country's
biggest lender.
 RBC shares tumbled 3.5 percent to C$48.98 after the company
reported a profit that missed estimates and said weak market
conditions would likely continue to weigh on it.
 Other big banks skidded ahead of earnings releases next
week. Bank of Nova Scotia (BNS.TO: Quote) shed 1.6 percent to C$51.34,
and Toronto-Dominion Bank (TD.TO: Quote) dropped 1.1 percent to
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 43.20 points, or 0.35 percent, at 12,327.51.
Eight of its 10 main sectors ended higher, including weighty
materials and energy shares. The TSX gained 2.7 percent for the
 Fergal Smith, managing market strategist at Action
Economics, said near-term support holding around the Aug. 5 and
Aug. 8 lows of 11,600-11,900 would set up a double-bottom,
which could prompt a rally targeting the June low of 12,764.
 After an initial selloff following the speech, the TSX
index followed U.S. markets higher as some investors saw the
Fed's lack of action as good news for the economy.
 While expressing long-term optimism, Bernanke said the Fed
found recent developments troubling and saw inflation staying
 "The markets said, hey, maybe the fact that the Fed is
staying out of the way and not meddling with markets may not be
such a bad thing," said Levente Mady, market strategist at
Union Securities in Vancouver.
 The top gainer was fertilizer producer Potash Corp
(POT.TO: Quote), which jumped 3.9 percent to C$56.15.
 Precious metal miners also climbed on the back of rallying
gold prices after days of liquidation had pushed bullion down
from record highs. [GOL/]
 Goldcorp (G.TO: Quote) gained 1.8 percent to C$50.98, and Barrick
Gold (ABX.TO: Quote) pushed up 1.4 percent to C$50.06.
 ($1=$0.98 Canadian)
 (Editing by Peter Galloway)