August 12, 2009 / 2:38 PM / 10 years ago

CANADA STOCKS-TSX heads higher but cautious ahead of Fed

 * TSX up 0.91 percent at 10,726.18
 * Index broadly higher after two straight days of declines
 * Fed statement eyed, due at 2:15 p.m. (1815 GMT)  (Adds details)
 TORONTO, Aug 12 (Reuters) - Toronto’s main stock index was higher on Wednesday morning but a cautious mood prevailed ahead of the U.S. Federal Reserve’s policy announcement later in the day.
 The session opened lower, extending two straight sessions of profit-taking, but investors quickly stepped back into the market and the TSX zoomed higher, with all of the index’s 10 sectors rising.
 The index’s three most heavily weighted groups — energy, financials and materials — all had major names contributing to the move higher, with Suncor Energy leading the way.
 Suncor (SU.TO), the country’s biggest energy company, climbed 2.3 percent to C$35.72. The country’s biggest bank, Royal Bank of Canada (RY.TO), followed with a 1.2 percent gain to C$50.05.
 Uranium miner Cameco Corp (CCO.TO), which reported a higher second-quarter profit that topped forecasts, was up 1.63 percent at C$29.86.
 The energy group rose 1.41 percent as the price of oil reversed early losses to edge back toward $70 a barrel after initially falling to the lowest price in August ahead of inventory data. [ID:nSP527509]
 The index’s mining-heavy materials group climbed 0.46 percent. The financial group, which fell about 7 percent in the past four sessions, advanced 0.93 percent.
 “The energy sector has been helped by the rebound in crude oil but follow-through remains fairly limited ahead of the inventory data this morning,” said Fergal Smith, managing market strategist at Action Economics.
 “Activity will probably be fairly limited ahead of the FOMC (the Federal Reserve’s open market committee) this afternoon.”
 At 10:15 a.m. (1415 GMT), the S&P/TSX composite index .GSPTSE was up 96.71 points, or 0.91 percent, at 10,726.18.
 The Fed is expected to keep U.S. interest rates steady at near zero at a meeting that concludes later on Wednesday but end its long-term government securities buying program amid signs the economy is emerging from a deep recession. [ID:nN11541630]
 The statement is expected at 2:15 p.m. EDT (1815 GMT).
 ($1=$1.10 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)                                      

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