CANADA STOCKS-TSX jumps on central bank comments, CML gain

Tue Jun 25, 2013 11:17am EDT

* 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.
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