CANADA STOCKS-TSX bounces back as U.S. data calms fears

Thu Oct 16, 2014 5:03pm EDT
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* TSX up 183.09 points, or 1.32 percent, at 14,052.97
    * Nine of 10 main index sectors advance
    * Energy, financial shares drive gains

    By John Tilak and Alastair Sharp
    TORONTO, Oct 16 (Reuters) - Canada's main stock index jumped
on Thursday as positive U.S. economic data helped ease concerns
about global growth, boosting shares in most major sectors.
    Investors were encouraged by data showing that the number of
Americans filing new claims for jobless benefits fell to a
14-year low last week and industrial output rose in September.
    The market initially tumbled to an eight-month low but then
recovered to record its first gain in the last five sessions.
The energy sector, which has been battered in the last three
months over concerns about oil demand, rebounded sharply and had
the biggest positive influence on the market. 
    Worries about the direction of the global economy and fears
that the U.S. Federal Reserve might raise interest rates have
hit equity markets hard in recent weeks. 
    The Toronto stock market's benchmark TSX index has lost more
than 10 percent of its value since reaching a record high last
    "The realization has come that the United States is linked
to global growth, and they cannot carry the weight of global
demand on their own," said Roland Chalupka, chief investment
officer of Fiduciary Trust Canada, a unit of Franklin Templeton
    "Sentiment for Canadian equities is tentative," he added.
"(It) is getting worse in the commodity-driven sectors." 
    Chalupka, who helps manage about C$1.6 billion in assets,
said that the Canadian equity market was "richly valued" despite
the recent pullback.
    The Toronto Stock Exchange's S&P/TSX composite index
 ended up 183.09 points, or 1.32 percent, at 14,052.97
after a choppy session.
    "This is what happens when you get volatility. You get
whipped, smacked around, turned around left and right," said
Barry Schwartz, portfolio manager at Baskin Financial Services.
"We've forgotten that this can happen because we haven't seen it
in a long time." 
    Nine of the 10 main sectors on the index were higher on
    Shares of energy producers received a lift from the oil
price. Canadian Natural Resources Ltd added 4.3 percent
to C$37.57, and Suncor Energy Inc climbed 2.3 percent to
    Financials, the index's most heavily weighted sector,
advanced 0.6 percent. Toronto Dominion Bank climbed 1.6
percent to C$52.07.
    The materials sector, which includes mining stocks, declined
0.4 percent. Teck Resources Ltd lost 2.5 percent to

    ($1=$1.13 Canadian)

 (Editing by Peter Galloway and Cynthia Osterman)