April 27, 2011 / 9:04 PM / 8 years ago

CANADA STOCKS-TSX cuts loss as gold rebounds, Fed comforts

 *TSX rebounds from 1-week low
 * Ends down 0.12 pct at 13,892.57, 7 sectors fall
 * Fed signals no rush to scale back US economic support  (Updates to close)
 TORONTO, April 27 (Reuters) - Toronto’s main stock index closed lower on Wednesday but cut most of its early-session losses, comforted by a bounce-back in gold-mining issues and by U.S. Federal Reserve signals that it would maintain its support for the U.S. economy.
 The index took its cue from Wall Street and oil prices, both of which nudged higher after the Fed said in a statement that it believed the economic recovery was proceeding at a moderate pace, with little risk that an inflationary psychology would take hold. [ID:nN26291565]
 After a two-day meeting, the policy-setting Federal Open Market Committee said that it intends to complete its $600 billion bond-buying program in June as scheduled.
 Fed Chairman Ben Bernanke’s first-ever press conference resulted in no serious wavering in optimism, while earnings reports in both Canada and the United States impressed investors.
 “I think some of the news that we saw today implies the market is going to continue to grow moderately,” said Pat McHugh, senior portfolio manager and equity strategist at Manulife Asset Management. “If anything, I think consensus opinion is that the pace of economic growth is going to slow as we proceed through 2011 and that nothing we see today really changes any of that.”
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE hit its lowest point in a week, down nearly 1 percent, or 138 points, at 13,770.81, in the morning but finished just 16.53 points lower at 13,892.57. Seven of its 10 sectors fell.
 The index’s materials group ended up 0.61 percent, and its gold-mining subgroup finished 1.66 percent higher after seesawing through the session.
 Barrick Gold Corp (ABX.TO) had been a top decliner after announcing on Monday a friendly deal to buy copper miner Equinox, but finished up 1.24 percent at C$48.34. It reported a 22 percent increase in quarterly profit on Wednesday, driven largely by the surge in bullion prices. [ID:nN27110953]
 ($1=$0.95 Canadian)   (Reporting by Ka Yan Ng; editing by Peter Galloway)                                        

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