CANADA STOCKS-TSX creeps up after BoJ stimulus, oil shares drop

Wed Sep 19, 2012 11:22am EDT

* TSX up 26.73 points, or 0.22 percent, at 12,449.44
    * Japan central bank stimulus adds to chorus of global
easing
    * Crude oil price falls hurt energy companies

    By Alastair Sharp
    TORONTO, Sept 19 (Reuters) - Canada's main stock index edged
higher on Wednesday as investors cheered the Bank of Japan's
move to become the latest major central bank to ease monetary
policy, but energy shares dropped on a sharp fall in crude oil
prices.
    Suncor Energy Inc, Canada's largest integrated
producer, fell 1 percent to C$33.18 after crude slipped to a
six-week low on signs that Saudi Arabia would produce more to
dampen prices. 
    Canadian Natural Resources Ltd, the country's
largest independent oil explorer and producer, was down 0.8
percent at C$32.49.
    But overall market sentiment brightened after the Bank of
Japan, faced with weakening exports and a prolonged slowdown in
Chinese growth, eased monetary policy by boosting its
asset-buying program to try to spark growth in the world's third
largest economy. 
    The move, which followed soon after similar steps from the
U.S. Federal Reserve and the European Central Bank, was also
aimed at encouraging companies to invest cash to expand their
businesses. 
     "Corporations need happy pills to get them to spend that
money," said Irwin Michael, portfolio manager at ABC Funds.
"That's what these authorities are trying to create."
     By 10:50 a.m (1450 GMT) the Toronto Stock Exchange's
S&P/TSX composite index was up 26.73 points, or 0.22
percent, at 12,449.44, as miners and banks rose.
    "On balance the market is quiet, people are still trying to
get their bearings," Michael added. "I still think there is an
upward bias, but we have to be patient."
    Barrick Gold Corp was the biggest positive mover,
adding 1.2 percent to C$41.52, while Royal Bank of Canada
 gained 0.6 percent to C$56.74, and Toronto-Dominion Bank
 rose 0.5 percent to C$81.95.
    Centerra Gold Inc jumped more than 9 percent after
the miner said it would restart operations at a project in
Mongolia. 
    Colossus Minerals Inc gained 11.8 percent to C$5.85
after the junior miner said it had reached a $75 million
financing deal with Sandstorm Gold Ltd tied to future
precious metal production, with the proceeds going to the
development of its Serra Pelada mine in Brazil.
    Shares in B2Gold Corp fell 8.6 percent to C$3.92
after the miner said it will buy CGA Mining Ltd for
C$1.1 billion to gain access to its flagship gold mine in the
Philippines.
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