CANADA STOCKS-TSX cuts loss as gold rebounds, Fed comforts

Wed Apr 27, 2011 5:03pm EDT
 
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 *TSX rebounds from 1-week low
 * Ends down 0.12 pct at 13,892.57, 7 sectors fall
 * Fed signals no rush to scale back US economic support
 (Updates to close)
 TORONTO, April 27 (Reuters) - Toronto's main stock index
closed lower on Wednesday but cut most of its early-session
losses, comforted by a bounce-back in gold-mining issues and by
U.S. Federal Reserve signals that it would maintain its support
for the U.S. economy.
 The index took its cue from Wall Street and oil prices,
both of which nudged higher after the Fed said in a statement
that it believed the economic recovery was proceeding at a
moderate pace, with little risk that an inflationary psychology
would take hold. [ID:nN26291565]
 After a two-day meeting, the policy-setting Federal Open
Market Committee said that it intends to complete its $600
billion bond-buying program in June as scheduled.
 Fed Chairman Ben Bernanke's first-ever press conference
resulted in no serious wavering in optimism, while earnings
reports in both Canada and the United States impressed
investors.
 "I think some of the news that we saw today implies the
market is going to continue to grow moderately," said Pat
McHugh, senior portfolio manager and equity strategist at
Manulife Asset Management. "If anything, I think consensus
opinion is that the pace of economic growth is going to slow as
we proceed through 2011 and that nothing we see today really
changes any of that."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE hit its lowest point in a week, down nearly 1
percent, or 138 points, at 13,770.81, in the morning but
finished just 16.53 points lower at 13,892.57. Seven of its 10
sectors fell.
 The index's materials group ended up 0.61 percent, and its
gold-mining subgroup finished 1.66 percent higher after
seesawing through the session.
 Barrick Gold Corp ABX.TO had been a top decliner after
announcing on Monday a friendly deal to buy copper miner
Equinox, but finished up 1.24 percent at C$48.34. It reported a
22 percent increase in quarterly profit on Wednesday, driven
largely by the surge in bullion prices. [ID:nN27110953]
 ($1=$0.95 Canadian)
  (Reporting by Ka Yan Ng; editing by Peter Galloway)