September 12, 2012 / 9:18 PM / 6 years ago

CANADA STOCKS-TSX moves up as Federal Reserve meets

* TSX closes up 12.17 points, or 0.1 percent, at 12,232.62
    * Seven of 10 sectors in positive territory
    * Focus shifts from German court ruling to Fed decision

    TORONTO, Sept 12 (Reuters) - Canada's main stock index
closed slightly higher on Wednesday, with investors shifting
their focus from a positive German court ruling on the euro
zone's new bailout fund to caution over the U.S. Federal
Reserve's meeting.
    The Fed looks set to announce a third round of bond
purchases after its meeting wraps up on Thursday, as it tries to
drive borrowing costs even lower and breathe more life into an
economy that is not growing quickly enough to reduce
    A pair of heavyweight gold miners were the biggest positive
influences on the index, but bullion was flat after hitting
six-month highs as some buyers scaled back their bets. 
    "It is surprising, given that you've now got the green light
for quantitative easing in Europe to go along with another bout
from the Fed, that you didn't see more strength in things like
oil and gold," said Gavin Graham, president at Graham Investment
    The 19-commodity Thomson Reuters-Jefferies CRB index 
was off 0.1 percent.
    Analysts say high hopes are priced in and any disappointing
words from the Fed could result in pronounced sell-offs.
    "The market's been climbing the proverbial wall of worry and
it's seen cautiousness all the way along," said Paul Hand,
managing director at RBC Capital Markets.
    Top advancer Goldcorp jumped 2.3 percent to C$42.01
while Barrick Gold moved 0.9 percent higher to C$38.75.
    Among the laggards, Potash Corp lost 1.9 percent to C$40.92
and Royal Bank of Canada dipped 0.7 percent to C$55.41.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 12.17 points, or 0.1 percent, at 12,232.62.
Seven of the 10 sectors were stronger.
    Rogers Communications was the third most
influential name on the way up, climbing 2 percent to C$40.78. A
Bank of America Merrill Lynch analyst upgraded the telecom
company to "buy" from "neutral". 
    Germany's Constitutional Court said the country can ratify
the euro zone's new rescue fund and budget pact as long it can
guarantee there will be no increase in German financial exposure
to the bailout fund without parliament's approval.
    The fund is seen potentially going a long way to solving the
region's debt crisis, and news of the court ruling gave a lift
to equities, commodities, riskier currencies and bonds of
heavily indebted euro zone nations. 
    In company news, Niko Resources lost a third of its
value to close at C$9 and Petrominerales fell more than
14 percent to C$8.21, after both oil and gas producers
disappointed investors with drilling updates from their
respective Indonesian and Colombian operations, prompting
analyst downgrades. 
    Dollarama was down 0.6 percent to C$58.97, despite
reporting a jump in quarterly profit.
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