CANADA STOCKS-TSX rises, gold stocks offset RIM decline

Tue Jan 29, 2013 11:47am EST
 
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* TSX rises 5.20 points, or 0.04 percent, to 12,821.11
    * Six of 10 main sectors decline
    * RIM falls 7.5 percent ahead of BlackBerry 10 launch
    * CP Rail gains on efficiency push

    By John Tilak
    TORONTO, Jan 29 (Reuters) - Canada's main stock index edged
higher on Tuesday, lifted by a rally in gold shares, which rose
with gold's price, as investors speculated on U.S. Federal
Reserve actions as it begins a meeting on interest rates.
    The gains were, however, kept in check by a 7.5 percent
decline in Research In Motion Ltd shares, triggered by
investor caution ahead of the BlackBerry 10 launch. 
    The market pullback follows a recent rally in the stock in
the run-up to the launch.
    "The stock has been overbought of late. It has pulled back
with profit taking." said John Ing, president of Maison
Placements Canada. "The proof will be in the pudding as to
whether it will sell. There are very high expectations."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 5.20 points, or 0.04 percent, at 12,821.11. Six
of the 10 main sectors on the index were in the red.
    While the Fed is not expected to change its stance after
deciding only in December to loosen conditions further,
investors are watching to see if changes in the membership of
the policy-setting committee for 2013 could signal a shift in
the future. 
    "The expectation is that little will change other than
probably some comment with respect to the eventual exit (from
the stimulus). Right now it will be a reaffirmation of the low
interest rate policy," Ing said.
     He said his expectation for the gold sector this year is
quite bullish. "Gold has been pretty good refuge in order to
maintain, to hedge the depreciation in the value of currencies,"
he said.
    The materials sector, which includes mining stocks, played
the biggest role in leading the market higher, rising 0.4
percent. The group was boosted by a 0.5 percent rise in gold
prices. 
    Goldcorp Inc rose 2.3 percent to C$36.36, and Kinross
Gold gained 1.6 percent to C$8.49.
    The market was also supported by a 3.9 percent rise in
Canadian Pacific Railway Ltd, which reported a sharp
drop in quarterly profit on Tuesday as restructuring charges ate
into earnings but said its aggressive efficiency push is poised
to pay off. The stock climbed to C$117.22.