January 29, 2013 / 9:44 PM / 6 years ago

CANADA STOCKS-TSX closes higher as CP Rail, gold stocks climb

* TSX rises 14.65 points, or 0.11 percent, to 12,830.56
    * Seven of 10 main sectors advance
    * RIM falls 3.4 percent ahead of BB10 launch
    * CP Rail gains on efficiency push

    By John Tilak
    TORONTO, Jan 29 (Reuters) - Canada's main stock index
climbed on Tuesday, lifted by Canadian Pacific Railway Ltd's
profit outlook and a rally in gold shares, which rose with the
price of the precious metal as investors speculated on U.S. Fed
    Canadian Pacific said its aggressive efficiency push
would pay off in a 40 percent increase in earnings this year,
sending its shares to an all-time high.  The stock climbed 3.1
percent to C$116 .22. 
    Gold rose on short-covering and expected continuation of
loose U.S. monetary policies. 
    The gains were, however, kept in check by a fall in
financials and a 3.4 percent decline in Research In Motion Ltd
 shares, triggered by investor caution ahead of the
BlackBerry 10 launch on Wednesday. 
    The market pullback follows a recent rally in the stock in
the run-up to the launch. 
    "Tomorrow is the big day. But it will be sometime before
it's discernible whether or not it is in fact the great success
they're hoping for," said Michael Sprung, president of Sprung
Investment Management.
    "It's a coin toss. At the end of the day, no one can predict
the success of BB10. It's a speculative stock," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 14.65 points, or 0.11 percent, at 12,830.56.
Seven of the 10 main sectors on the index advanced.
    While the Fed is not expected to change its stance after
deciding only in December to loosen conditions further,
investors are watching to see if changes in the membership of
the policy-setting committee for 2013 could signal a shift in
the future. 
    "The expectation is that little will change other than
probably some comment with respect to the eventual exit (from
the stimulus). Right now it will be a reaffirmation of the low
interest rate policy," said John Ing, president of Maison
Placements Canada.
    He said his expectation for the gold sector this year is
quite bullish. "Gold has been pretty good refuge in order to
maintain, to hedge the depreciation in the value of currencies,"
he said.
    The materials sector, which includes mining stocks, played
the biggest role in leading the market higher, rising 0.7
percent. The group was boosted by a 0.5 percent rise in gold
    Goldcorp Inc rose 1.7 percent to C$36.11, and Yamana
Gold added 2.7 percent to C$16.65.
    CP Rail helped the industrials sector gain 0.9 percent.
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