September 27, 2013 / 8:53 PM / 6 years ago

CANADA STOCKS-TSX steady as banks offset U.S. budget fears

* TSX rises 2.46 points, 0.02 percent, to 12,844.08
    * Five of the 10 main index sectors gain
    * Bombardier climbs after Lion Air shows interest in jets
    * BlackBerry advances after reporting results

    By John Tilak
    TORONTO, Sept 27 (Reuters) - Canada's main stock index was
little changed on Friday as gains in the financial sector helped
offset concerns about the U.S. budget crisis, but it posted a
modest weekly gain. 
    Investors also followed shares of BlackBerry Ltd,
which climbed after the smartphone maker reported quarterly
    Also offering some support to the market, data showed higher
U.S. household spending in August as incomes benefited from wage
gains. But investors continued to fret over
tenuous debt and budget negotiations in the U.S. Congress, as
they have all week.
    The worries about a possible U.S. government shutdown if the
negotiations don't succeed turned out to be a boon to the price
of bullion, however, as gold is seen as a safe-haven asset in
difficult times, though gold-mining stocks gave up most of their
strong early gains. 
    The benchmark Canadian index, which is up nearly 6 percent
this quarter, outperformed the S&P 500 on Friday. It
advanced 0.3 percent on the week. 
    The TSX could climb further in the coming months as
commodity prices start to become less volatile, said Youssef
Zohny, portfolio manager at Stenner Investment Partners, a unit
of Richardson GMP.
    "The fact that we're seeing stability in gold and silver
definitely helps the TSX," he added. "Emerging markets seem to
have stabilized a bit, so that may create a more attractive
investment landscape for the Canadian market."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 2.46 points, 0.02 percent, at 12,844.08.
Five of the 10 main sectors on the index were higher. 
    Financials, the index's most heavily weighted sector, rose
0.2 percent. Toronto Dominion Bank was up 0.5 percent at
C$92.73, and Royal Bank of Canada advanced 0.2 percent
to C$66.54.
    With gold prices jumping 1 percent, shares of gold producers
edged higher. In the group, Goldcorp Inc climbed 0.3
percent to C$26.55, and Barrick Gold Corp rose 0.2
percent to C$19.11.
    Indonesia's Lion Air said it is looking to fill "thin"
routes with Bombardier Inc's CS300 jets and that is in
talks with the Montréal-based aircraft maker on making an order.
Bombardier's stock was up 0.6 percent at C$4.86. 
    Days after signing a tentative $4.7 billion deal with its
largest shareholder to take the company private, BlackBerry
reported a quarterly loss of nearly $1 billion, confirming its
warning of a week earlier. The stock rose 0.7 percent to C$8.28.
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