June 17, 2013 / 8:45 PM / 6 years ago

CANADA STOCKS-Fed hopes buoy TSX as bank, energy shares climb

* TSX rises 101.54 points, or 0.83 percent, to 12,288.90
    * All 10 main index sectors advance
    * Brookfield climbs after asset sales announced

    By John Tilak
    TORONTO, June 17 (Reuters) - Canada's main stock index
jumped on Monday as hopes that this week's Federal Reserve
meeting would reaffirm support for the U.S. central bank's easy
monetary policy spurred sharp gains in shares of financial and
energy companies.
    The rise helped the market recover from its 1.5 percent loss
last week, but the index remained in negative territory for the
    As with global equity markets, Toronto stocks have been hit
in recent weeks by fears the Fed will soon start scaling down
its quantitative easing program, under which it buys $85 billion
a month in bonds. 
    But markets on Monday turned optimistic that the Fed, at its
two-day meeting that ends Wednesday, will reaffirm its
commitment to supporting U.S. economic recovery 
    "Expectations continue to wax and wane with regard to the
Fed's intentions," said Elvis Picardo, strategist and vice
president of research at Global Securities in Vancouver.
    "The last thing the Fed wants to do is to roil the markets.
The Fed is aware that investors are hanging onto its every
word," he added. "If anything, I expect Bernanke to soothe the
market's fears."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 101.54 points, or 0.83 percent, at
     "People are feeling better. A little bit of confidence is
slowly back up in our market," said Fred Ketchen, director of
equity trading at ScotiaMcLeod. "We might have overdone it on
the downside, and it's time to equal that now and show some
response to modest economic growth."
    Data showing German wages rose at their fastest pace in
almost four years at the start of 2013 and euro zone exports
jumped in April lifted hopes that Europe was recovering from
    All of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector, were
up 0.8 percent. In the group, Royal Bank of Canada, the
country's biggest lender, gained 0.7 percent to C$60.43.
    Brookfield Asset Management Inc shares were up 2.6
percent, at C$36.89.
     The investment company said on Sunday it will sell its
Longview Timber holdings in the U.S. Pacific Northwest to
Weyerhaeuser Co for $2.65 billion, including assumption
of debt, and will sell a nearby paper and packaging business to
KapStone Paper and Packaging Corp for $1.025 billion.
    Shares of energy companies were up 1.4 percent. 
    Canadian Natural Resources Ltd climbed 2.7 percent
to C$30 and played the biggest role of any single stock in
leading the market higher. Suncor Energy Inc added 0.9
percent to C$31.24.
    Miner Nevsun Resources Ltd fell nearly 9 percent to
C$3.21 after it said it will be removed from the New York Stock
Exchange's Arca Gold Miners Index as output at its Bisha mine in
Eritrea switches to copper from gold.
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