CANADA STOCKS-TSX gets bounce from banks, energy after U.S. data

Tue Apr 16, 2013 5:14pm EDT
 
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* TSX rises 115.04 points, or 0.96 percent, at 12,119.92
    * Nine of 10 main sectors advance
    * Gold shares fall about 1 pct; First Quantum jumps 9.3 pct
    * BlackBerry gains 1.4 percent after positive analyst report

    By John Tilak
    TORONTO, April 16 (Reuters) - Canada's main stock index rose
almost 1 percent on Tuesday, recovering some of the losses seen
in Monday's dramatic selloff, as U.S. economic data helped spur
a rally in financial and energy shares.
    Data showed U.S. consumer prices dropped last month, leaving
room for the Federal Reserve to keep up its economic stimulus
efforts. The Fed's ultra-loose monetary policy has been one of
the drivers of the stock market rally this year. 
    Still, the gain in Canadian stocks only partly made up for
Monday's 2.7 percent fall, its biggest one-day percentage drop
since June.
    "Cooler heads have prevailed today; you're seeing some
buying interest at these levels," said Julie Brough, vice
president at Morgan Meighen & Associates. 
    "Some of these stocks were dramatically oversold yesterday.
There was a panic sell that was going on," she added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 115.04 points, or 0.96 percent, at
12,119.92.
    The benchmark Canadian index is down 2.5 percent since the
start of the year, a sharp contrast to the rally seen in U.S.
stocks.
    Shares of gold producers remained depressed, falling almost
1 percent, after slumping 9 percent on Monday as the price of
the precious metal lost 8.5 percent.
    "I don't believe there's a real opportunity in gold or gold
equities in the near term," said Stan Wong, vice president and
portfolio manager at Macquarie Private Wealth."
    "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.
    Nine of the index's 10 main sectors were higher on Tuesday.
    The only group to slip was the materials sector as a 3.7
percent rise in base metal mining stocks was offset by gold
shares, which fell despite gold prices gaining about 1 percent.
 
    Miner First Quantum Minerals Ltd soared 9.3 percent
to C$17.03.
    Financials, the index's most heavily weighted sector,
climbed 1.3 percent.
    Energy shares added 1.3 percent. Suncor Energy Inc 
jumped 3.3 percent to C$28.41 and played the biggest role of any
single stock in leading the market higher. 
    BlackBerry shares rose 1.4 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 smartphone appears to be positive in Asia, he wrote in a
report.