CANADA STOCKS-TSX gains as gold recovers from sell-off
* TSX rises 57.92 points, or 0.48 percent, to 12,062.80 * Eight of 10 main sectors advance * Gold shares climb 1.5 pct; First Quantum jumps 7.3 pct * BlackBerry gains 1.4 pct after positive analyst report By John Tilak TORONTO, April 16 (Reuters) - Canada's main stock index advanced on Tuesday, as U.S. economic data supported the case for continued stimulus measures from the Federal Reserve and shares of gold miners rose with a rebound in price of bullion a day after its biggest-ever daily loss. U.S. consumer prices fell in March for the first time in four months while factory output slipped. Other data suggested the U.S. housing market recovery was losing momentum. Although housing starts jumped in March to their highest level since 2008, gains were driven by the volatile multi-family sector, while groundbreaking for single-family homes fell. Shares of gold producers made a tentative recovery after slumping 9 percent on Monday as the price of the precious metal lost 8.5 percent. The broader Toronto market firmed after Monday's 2.7 percent fall, its biggest one-day percentage drop since June. "It's a reflex bounce," said Stan Wong, vice president and portfolio manager at Macquarie Private Wealth. "I don't believe there's a real opportunity in gold or gold equities in the near term." "It's unlikely that gold will continue its previous upward trend without a strong catalyst, and I really don't know where that catalyst could come from." News that the central bank of Cyprus might sell gold reserves to finance its European Union bank bailout was one of the triggers for the plunge in the price of gold on Monday. Wong said investors need to watch out for the possibility of other European nations such as Italy and Portugal coming under pressure to sell their gold reserves, which are much bigger than those of Cyprus. The Toronto Stock Exchange's S&P/TSX composite index was up 57.92 points, or 0.48 percent, at 12,062.80. The benchmark Canadian index is down 3 percent since the start of the year, a sharp contrast to the record rallies seen in its peers south of the border. Eight of the 10 main sectors of the index were higher on Tuesday. The materials sector, which includes mining stocks, added 1.1 percent. Gold shares were up 1.5 percent, with gold prices gaining 1.8 percent. First Quantum Minerals Ltd jumped 7.3 percent to C$16.71 and played the biggest role of any single stock in leading the market higher. Financials, the index's most heavily weighted sector, climbed 0.5 percent. BlackBerry shares rose 1.5 percent to C$14.21 after Jefferies & Co analyst Peter Misek said no abnormally high return rates have been seen for the new Z10 touchscreen device, which underpins the company's attempt to reinvent itself. Demand for the device appears to be positive in Asia, he wrote in a report.
© Thomson Reuters 2017 All rights reserved.