CANADA STOCKS-TSX little changed ahead of Fed statement

Wed Sep 23, 2009 10:32am EDT
 
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 * TSX up 3.72 points, or 0.03 percent, at 11,589.45
 * Market focus on U.S. Federal Reserve statement
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Sept 23 (Reuters) - Toronto's main stock index was
little changed on Wednesday morning after rallying in the
previous session, with investors reluctant to make moves before
a key U.S. Federal Reserve policy statement later in the day.
  Big names on the upside included oil company EnCana Corp
ECA.TO, up 0.4 percent at C$62.64, and BlackBerry maker
Research In Motion RIM.TO, which climbed 2.1 percent to
C$92.75.
 On the downside, Canadian Natural Resources sank 1.3
percent to C$75.63, while Suncor Energy SU.TO fell 1.1
percent to C$38.98.
 The market will probably be in a wait and hold pattern
until the U.S. central bank releases its policy statement, said
Gareth Watson, Canadian equity advisor at ScotiaMcLeod.
 The market expects that in its statement, due around 2:15
p.m. (1815 GMT), the U.S. central bank will hold rates near
zero percent and take note of an improving economy, while
cautioning that high unemployment puts recovery at risk.
[ID:nN23390829]
 "The language of the statement released by the Fed is going
to determine whether we move higher or give back some gains we
had yesterday," Watson said. He noted the market is looking for
any language that reaffirms talk the recession is likely over,
as well any clues on the health of consumer spending.
 "Without the consumer we're not going to get sustainability
in this rally we've had," Watson said.
  Bank of Canada Governor Mark Carney said late on Tuesday
the domestic economy has started the slow climb to recovery but
only because of emergency measures taken by the government and
the central bank, with business activity still lagging.
[ID:nN22355648]
 At 10:06 a.m. (1406 GMT), the S&P/TSX composite index
.GSPTSE was up 3.72 points, or 0.03 percent, to 11,589.45. On
Tuesday, the index finished 1.41 percent higher.
 The index's key energy sector fell 0.32 percent as the
price of oil fell toward $70 a barrel. [O/R] The mining-heavy
materials group climbed 0.21 percent even though underlying
metals prices were weaker. [GOL/] [MET/L]
 Six of the index's main groups were higher, helping the
market maintain its recent run-up of some 50 percent from
five-year lows hit in March.
 ($1=$1.07 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)