November 6, 2013 / 3:52 PM / 6 years ago

CANADA STOCKS-TSX climbs as Fed hopes boost gold-mining stocks

* TSX rises 48.89 points, or 0.37 percent, to 13,410.60
    * Nine of 10 main index sectors gain
    * Enbridge, Magna up after earnings

    By John Tilak
    TORONTO, Nov 6 (Reuters) - Canada's main stock index climbed
on Wednesday, led by gains in gold-mining shares, as
anticipation grew that the U.S. Federal Reserve will put off
plans to scale back its monetary stimulus program.
    Investors also analyzed earnings statements from some of the
country's major energy players, Enbridge Inc and
Talisman Energy Inc, as well as a positive report from
auto parts maker Magna International Inc.
    Top Fed officials have been saying in recent days that the
U.S. central bank should not make changes to the stimulus until
there's more evidence to suggest that the world's biggest
economy is on a firmer footing. 
    "The Fed will err on the side of generosity," said Irwin
Michael, portfolio manager at ABC Funds. "We believe they're
going to stay longer with lower rates until they are absolutely
certain the economy is back on track."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 48.89 points, or 0.37 percent, at 13,410.60.
    Almost every major sector was trading in positive territory,
supporting an index that has jumped nearly 5 percent in the last
    "The longer the market holds up, the more motivated will be
those investors who are sitting on maybe a little too much
cash," Michael said. "They want to get that money working."
    Natural resource stocks, which have been hit by volatile
commodity prices this year, are looking attractive, he added.
    Gold-mining stocks jumped 1.2 percent, helped by a gain in
the price of bullion. Goldcorp Inc rose 1 percent
to C$26.24.
    Financial shares climbed 0.3 percent. Toronto Dominion Bank
 added 0.5 percent to C$96.15.
    Magna reported a nearly 13 percent rise in quarterly sales
as its European business improved. The stock gained 1.5 percent
to C$90.30. 
    The energy sector benefited from earnings reports and a
higher oil price.
    Enbridge advanced 0.5 percent, to C$46.02, after the
pipeline company reported higher third-quarter earnings, with
increased volumes on its crude pipelines offsetting higher
    Talisman reported a smaller quarterly net loss compared with
the year-earlier quarter. The stock was little changed.
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