August 26, 2011 / 8:48 PM / 7 years ago

CANADA STOCKS-TSX perks up after Fed raises stimulus hopes

   * TSX ends up 43.20 points, or 0.35 percent, at 12,327.51
 * Eight of 10 main sectors stronger
 * Bernanke offers no additional U.S. stimulus measures  (Updates to close, adds details, quotes)
 By Claire Sibonney and Trish Nixon
 TORONTO, Aug 26 (Reuters) - Toronto’s main stock index rebounded to end higher on Friday after a speech by Federal Reserve Chairman Ben Bernanke left the door open for further U.S. stimulus measures next month.
 Bernanke stopped short of signaling more moves to boost growth during a speech at a central bank conference in Jackson Hole, Wyoming, but he said the Fed’s policy panel would meet for two days in September instead of the scheduled one day to discuss any additional stimulus. [nN1E77O1LR]
 After an initial selloff following the speech, the TSX index followed U.S. markets higher as some investors saw the Fed’s lack action as good news for the economy.
 “After the initial selloff the markets said, hey, maybe the fact that the Fed is staying out of the way and not meddling with markets may not be such a bad thing,” said Levente Mady,  market strategist at Union Securities in Vancouver.
 Most of the TSX’s 10 main sectors ended higher, though financials - the most heavily weighted group - dragged the TSX to underperform its U.S. counterparts after disappointing results from Royal Bank of Canada (RY.TO), the country’s biggest lender.
 RBC shares tumbled 3.5 percent to C$48.98 after the company reported a profit that missed estimates and said weak market conditions would likely continue to weigh on it. [ID:nN1E77N0YI]
 Other big banks skidded ahead of earnings releases next week. Bank of Nova Scotia (BNS.TO) shed 1.6 percent to C$51.34, and Toronto-Dominion Bank (TD.TO) dropped 1.1 percent to C$73.90.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 43.20 points, or 0.35 percent, at 12,327.51. Eight of its 10 main sectors ended higher, including weighty materials and energy shares. The TSX gained 2.7 percent for the week.
 Fergal Smith, managing market strategist at Action Economics, said near-term support holding around the Aug. 5 and Aug. 8 lows of 11,600-11,900 would set up a double-bottom, which could prompt a rally targeting the June low of 12,764.
  On the upside, the top three gainers were fertilizer producer Potash Corp POT.TO, which jumped 3.9 percent to C$56.15, and miners Goldcorp (G.TO) which gained 1.8 percent to C$50.98, and Barrick Gold (ABX.TO), up 1.4 percent at C$50.06.
 ($1=$0.98 Canadian)  (Editing by Peter Galloway)                                        

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