CANADA STOCKS-TSX jumps on central bank comments, CML gain
* TSX rises 135.32 points, or 1.14 percent, to 11,972.18 * All 10 major index sectors advance * CML surges 47 percent after takeover offer * TD climbs 1.7 percent, biggest single influence on index By John Tilak TORONTO, June 25 (Reuters) - Canada's main stock index bounced back on Tuesday from a big loss the day before with all of its major sectors rising as comments from major central banks helped calm market fears about liquidity and monetary policy. China's central bank said it will not turn the screws too hard on banks in its drive to curb easy credit, seeking to allay fears of a banking crisis that had driven Chinese stocks to their lowest level in nearly 4-1/2 years, while two U.S. Federal Reserve officials played down the prospect of a speedy end to the U.S. central bank's stimulus program. The market was further supported by a 47 percent jump in CML HealthCare Inc after LifeLabs Medical Laboratory Services said it would acquire the medical diagnostic services provider in a deal valued at about C$965 million ($917 million). Also warming sentiment, data showed orders for long-lasting U.S. manufactured goods rose more than expected in May and a gauge of planned business spending increased for a third straight month, the latest signs of a pick-up in economic activity in the United States. "The market is still on the nervous side. But eventually things will calm down," said Fred Ketchen, director of equity trading at ScotiaMcLeod, said of Monday's almost 160-point fall on concerns about the Chinese economy. "I don't think we're going into the tank," he added. "The market is reflective of where we are on the basis of how the economy is doing." The Toronto Stock Exchange's S&P/TSX composite index was up 135.32 points, or 1.14 percent, at 11,972.18. Despite Tuesday's gains, the index was still down 3.7 percent on the year. The materials sector, which includes mining stocks, gained 0.4 percent. But gold mining stocks declined 0.4 percent after the bullion price gave up early gains. Barrick Gold Corp lost 2.4 percent to C$16.86. Financials, the index's most heavily weighted sector, were up 1.2 percent. Toronto-Dominion Bank climbed 1.7 percent to C$82.60 and played the biggest role of any single stock in leading the market higher. Investors also digested news that a group of Canadian companies including Royal Bank of Canada was planning to set up a new stock exchange to cater to retail and institutional investors who they say have been short-changed by predatory high-frequency trading practices. RBC added 1.2 percent to C$60.09. BlackBerry advanced 2.2 percent to C$15.08 as expectations for its quarterly report on Friday rose. CML's rise to C$10.60 helped the healthcare sector surge 12 percent.
- After Nevada ranch stand-off, emboldened militias ask: where next?
- South Korea investigates capsized ferry crew as rescue hampered by tides |
- Retailer Michaels Stores confirms payment card data breach
- Nobel winner Garcia Marquez, master of magical realism, dies at 87 |
- All 338 Korean students, teachers rescued from sinking ferry - school official