CANADA STOCKS-U.S. Fed's reassurance propels TSX to two-year high

Fri Nov 15, 2013 11:16am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX rises 40.48 points, or 0.30 percent, to 13,471.86
    * Seven of 10 main index sectors advance
    * Potash is market's most influential gainer
    * Saputo climbs after raising bid for Australian company

    By John Tilak
    TORONTO, Nov 15 (Reuters) - Canada's main stock index
climbed on Friday to its highest in more than two years as the
market cheered stimulus-friendly comments from the Federal
Reserve's Vice Chair Janet Yellen, who is expected to take over
as head of the U.S. central bank.
    The Toronto market advanced for a third straight session and
was on track to record a second consecutive weekly gain.
    Economic reforms announced by China, which included steps to
free up markets, also provided support. 
    Yellen on Thursday defended the Fed's plans is to stimulate
growth and stated she would implement the central bank's
ultra-easy monetary policy until officials were confident the
economic recovery was robust and job creation was sustainable.
 
    "She was very much expected to be a dove and her statements
give some strength to the view that she would continue
quantitative easing," said John Ing, president of Maison
Placements Canada.
    "Markets took that favorably," he added. "The markets are
addicted to the near-zero interest rates."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 32.11 points, or 0.24 percent, at 13,463.59,
after touching 13,473.32 - its highest level since July 2011.
    The strong advances in the broader Canadian market over the
last one month are unsustainable, but lagging natural resource
stocks offer value, Ing said. 
    "My expectation is that commodities will pick up," he said.
    Seven of the 10 main sectors on the index were higher on
Friday.
    Financials, the index's most heavily-weighted sector, added
0.3 percent. Bank of Nova Scotia advanced 0.5 percent
to C$65.77, and Toronto Dominion Bank rose 0.4 percent
to C$97.14. 
    Helped by higher U.S. crude oil prices, energy shares were
up 0.3 percent. Suncor Energy Inc gained 0.4
percent to C$37.38.
    The materials sector, which includes mining stocks, climbed.
Potash Corp jumped 1.6 percent to C$34.11 and was the
market's most influential gainer.
    In company news, Saputo Inc raised its takeover
offer for Australia's Warrnambool Cheese and Butter Factory Co
Holdings Ltd (WCB) by 12.5 percent, and Warrnambool's
board unanimously recommended it. Shares of the
Canadian dairy company rose 0.4 percent to C$48.87.