CANADA STOCKS-Bernanke boost drives TSX to six-week high

Wed Jul 17, 2013 4:59pm EDT
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* TSX rises 51.88 points, or 0.41 percent, to 12,568.77
    * Eight of 10 main index sectors advance
    * Gold-mining shares slip with bullion price
    * RBC climbs, has biggest impact on market

    By John Tilak
    TORONTO, July 17 (Reuters) - Canada's main stock index
climbed on Wednesday to its highest in 1-1/2 months after
Federal Reserve Chairman Ben Bernanke said that the U.S. central
bank's plans for its monetary stimulus program were not set in
    Financial stocks led the gains, while a falling bullion
price pushed gold miners lower. 
    Bernanke said the Fed still expects to start scaling back
its massive bond purchases later this year, but he left open the
option of changing that plan if the economic outlook shifted.
    Bernanke shook global markets earlier this year by hinting
that the Fed could put an end to its stimulus program sooner
than many had expected, while his comments last week that the
Fed's stance would stay accommodative drove markets to record
    "Market sentiment really hinges on what the latest word from
the Fed is," said Michael Sprung, president of Sprung Investment
    "Bernanke is just trying to have a more balanced approach
and not have that kind of an effect on the markets," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 51.88 points, or 0.41 percent, at 12,568.77,
after reaching 12,597.99, its highest since June 4.
    Bernanke's statement suggests that the Fed has things under
control but is flexible at the same time, said Fred Ketchen,
director of equity trading at ScotiaMcLeod.
    "The Fed has a half-decent handle on where they're going,
how they're going to get there and if things change they've got
the common sense to change with it," he added.
    Eight of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector,
climbed 1.1 percent.
    Royal Bank of Canada, the country's biggest lender,
was up 2 percent at C$63.80 and had the biggest influence on the
index. Bank of Nova Scotia added 1.6 percent to
    The materials sector, which includes mining stocks, lost 1.3
percent, hurt by a 2.7 percent drop in shares of gold miners.
The group slipped with the lower bullion price, which gave back
early gains after Bernanke said the stimulus could end this
    Barrick Gold Corp fell 1.7 percent to C$16.34, and
Goldcorp Inc stumbled 1.9 percent to C$27.62.
    Canadian National Railway Co advanced 1.1 percent
to C$105.48, helping lift the industrials group up 0.9 percent.