May 22, 2013 / 9:04 PM / 6 years ago

CANADA STOCKS-TSX edges up as Fed talk buoys golds, drags banks

* TSX rises 10.07 points, or 0.08 percent, at 12,752.50
    * Seven of 10 main sectors decline
    * Gold shares add more than 2 percent

    By John Tilak
    TORONTO, May 22 (Reuters) - Canada's main stock index
climbed on Wednesday, led by gold miners, after a day of choppy
trading as optimism that the U.S. Federal Reserve will keep its
easy money policy in place for now was tempered by fears of a
stimulus rollback.
    The resource-heavy market, which advanced for the fourth
straight session, reached its highest in more than two months
due to early gains.
    Fed Chairman Ben Bernanke said the central bank's monetary
stimulus is helping the U.S. economy recover, but added the bank
needs to see further signs of traction before taking its foot
off the gas. 
    Central banks are hesitant to turn off the tap because of
the risks involved and the unprecedented scale of government
spending, said Michael Sprung, president of Sprung Investment
    "Government officials are dancing on the head of a pin
themselves," he said. "They don't want to do anything to
destabilize the economy."
     "We've never seen an environment where the market is held
up by such massive spending by governments," he added. "That
cannot be sustained forever."
    With Wednesday's gains, the benchmark Canadian index is up
about 2.6 percent on the year.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 10.07 points, or 0.08 percent, at 12,752.50.
It earlier hit 12,889.26, its highest point in more than two
    "The market, like a drug addict, is addicted to lower
interest rates," said John Ing, president of Maison Placements
Canada. "Even hints of higher interest rates are enough to
remove the props from the market."
    Seven of the 10 main sectors on the index were in the red.
    Energy shares fell 0.1 percent.
    In company news, Talisman Energy said it expects to
remove the faulty platform at its Yme oilfield in the North Sea
next year and to submit a new plan for a new installation by the
first half of 2015. The stock rose 0.7 percent to C$12.23.
    Financials, the index's most heavily weighted sector, were
down 0.1 percent.
    But gold shares, down about 37 percent since the start of
the year, gained more than 2 percent and helped the materials
sector gain 1.7 percent.
    Goldcorp Inc rose 3.1 percent to C$28.19, and Barrick
Gold Corp added 1.7 percent to C$20.21.
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