CANADA STOCKS-TSX advances as oil, gold shares strengthen

Tue Apr 8, 2014 11:25am EDT
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* TSX up 33.25 points, or 0.23 percent, at 14,303.58
    * Six of the 10 main index sectors advance
    * Gold miners gain with bullion price

    By John Tilak
    TORONTO, April 8 (Reuters) - Canada's main stock index edged
higher on Tuesday with firmer commodity prices lifting gold and
oil shares as the market mood calmed after a sharp selloff in
U.S. markets in recent sessions had hit investor sentiment.
    Due to increasing fears that share prices might have run
ahead of themselves, investors have been pulling out of the U.S.
biotechnology and technology sectors, dragging Wall Street
    Also weighing on stocks have been concerns about the U.S.
Federal Reserve's efforts to roll back its monetary stimulus
program and uncertainty about when the Fed might raise interest
    On the Toronto stock market, gains in energy and gold-mining
shares after the prices of oil and bullion climbed helped offset
weakness in some other sectors.
    "It's a market that is trying to reformulate itself," said
David Cockfield, managing director and portfolio manager at
Northland Wealth Management.
    "I'm not sure that this correction is over, but it's
encouraging to see that it doesn't go straight down," he added.
"The effect of tapering is beginning to affect liquidity to a
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 33.25 points, or 0.23 percent, at 14,303.58.
    The benchmark index, which is up about 5 percent in 2014,
has outperformed Wall Street's S&P 500 index so far this
    "I don't expect the Canadian market to match any downside,
but I don't see our market charging ahead if the U.S. market is
heading south," Cockfield said. "We don't have any supercharged
P/Es in the Canadian market."
    Six of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector, were
up slightly. Bank of Montreal climbed 0.6 percent to
    Shares of gold producers rose 1.1 percent, helped by a near
1 percent gain in the price of the precious metal. Goldcorp Inc
 added 1 percent to C$27.44, and Barrick Gold Corp
 was up 0.9 percent, at C$20.32.
    The energy sector benefited from higher oil prices. Suncor
Energy Inc advanced 2.4 percent to C$39.97, and Canadian
Natural Resources Ltd rose 0.9 percent to C$43.68.
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)