CANADA STOCKS-TSX climbs as Summers' Fed exit lifts sentiment

Mon Sep 16, 2013 11:33am EDT

* TSX rises 90.88 points, or 0.71 percent, to 12,814.28
    * All 10 of the main index sectors advance
    * TD, CIBC gain after Aeroplan deal
    * Bombardier moves up after CSeries jetliner takes flight

    By John Tilak
    TORONTO, Sept 16 (Reuters) - Canada's main stock index rose
on Monday after news that former U.S. Treasury Secretary
Lawrence Summers had quit the race to become chairman of the
U.S. Federal Reserve lifted sentiment and fueled widespread
gains on stock markets around the world.
    While every single sector on the index was in positive
territory, advances in the financial sector were the main
drivers after Toronto-Dominion Bank and Canadian
Imperial Bank of Commerce reached a deal over control of
the popular Aeroplan loyalty credit card.
    With Summers pulling out, investors bet that a more gradual
unwinding of the Fed's stimulus measures was in the cards.
    "It takes some antagonism out of the market," said Fred
Ketchen, director of equity trading at ScotiaMcLeod. "Markets
had perceived Summers would be relatively hawkish, and that may
have made some people somewhat uncomfortable." 
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 90.88 points, or 0.71 percent, at 12,814.28.
    The benchmark Canadian index is up about 5 percent this
quarter after a sluggish first-half performance.
    Ketchen said investors taking a longer-term view of the
Canadian market could reap some benefits by the end of the year.
"My guess is cautious moves will still be made on the upside."
    Financials, the index's most heavily weighted sector, added
almost 1 percent. In the group, TD Bank climbed 1.1 percent to
C$90.92 and had the biggest positive influence on the index.
CIBC rose 0.8 percent to C$81.79.
    Aimia Inc, which runs the Aeroplan loyalty program,
struck a deal with TD and CIBC under which TD will be the issuer
of Aeroplan cards and buy half of CIBC's existing Aeroplan
portfolio, with CIBC retaining the rest. 
    Shares of Aimia jumped 5.5 percent to C$17.55. 
    The index's materials sector, which includes mining stocks,
gained 0.2 percent. Barrick Gold Corp advanced 1.8
percent to C$18.67, and Potash Corp was up 1.1 percent,
at C$33.96.
    Bombardier Inc shares added 0.6 percent to C$5.02
after the company's new CSeries jetliner took flight on Monday
for the first time.
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