April 16, 2013 / 3:40 PM / 6 years ago

CANADA STOCKS-TSX gains as gold recovers from sell-off

* TSX rises 57.92 points, or 0.48 percent, to 12,062.80
    * Eight of 10 main sectors advance
    * Gold shares climb 1.5 pct; First Quantum jumps 7.3 pct
    * BlackBerry gains 1.4 pct after positive analyst report

    By John Tilak
    TORONTO, April 16 (Reuters) - Canada's main stock index
advanced on Tuesday, as U.S. economic data supported the case
for continued stimulus measures from the Federal Reserve and
shares of gold miners rose with a rebound in price of bullion a
day after its biggest-ever daily loss.
    U.S. consumer prices fell in March for the first time in
four months while factory output slipped. 
    Other data suggested the U.S. housing market recovery was
losing momentum. Although housing starts jumped in March to
their highest level since 2008, gains were driven by the
volatile multi-family sector, while groundbreaking for
single-family homes fell. 
    Shares of gold producers made a tentative recovery after
slumping 9 percent on Monday as the price of the precious metal
lost 8.5 percent.
    The broader Toronto market firmed after Monday's 2.7 percent
fall, its biggest one-day percentage drop since June.
    "It's a reflex bounce," said Stan Wong, vice president and
portfolio manager at Macquarie Private Wealth. "I don't believe
there's a real opportunity in gold or gold equities in the near
    "It's unlikely that gold will continue its previous upward
trend without a strong catalyst, and I really don't know where
that catalyst could come from."
    News that the central bank of Cyprus might sell gold
reserves to finance its European Union bank bailout was one of
the triggers for the plunge in the price of gold on Monday.
    Wong said investors need to watch out for the possibility of
other European nations such as Italy and Portugal coming under
pressure to sell their gold reserves, which are much bigger than
those of Cyprus.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 57.92 points, or 0.48 percent, at 12,062.80.
    The benchmark Canadian index is down 3 percent since the
start of the year, a sharp contrast to the record rallies seen
in its peers south of the border.
    Eight of the 10 main sectors of the index were higher on
    The materials sector, which includes mining stocks, added
1.1 percent. Gold shares were up 1.5 percent, with gold prices
gaining 1.8 percent.
    First Quantum Minerals Ltd jumped 7.3 percent to
C$16.71 and played the biggest role of any single stock in
leading the market higher.
    Financials, the index's most heavily weighted sector,
climbed 0.5 percent.
    BlackBerry shares rose 1.5 percent to C$14.21 after
Jefferies & Co analyst Peter Misek said no abnormally high
return rates have been seen for the new Z10 touchscreen device,
which underpins the company's attempt to reinvent itself. Demand
for the device appears to be positive in Asia, he wrote in a
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below