CANADA STOCKS-TSX steady as Ukraine fears lift gold miners

Fri Mar 14, 2014 11:31am EDT

* TSX up 4.09 points, or 0.03 percent, at 14,249.23
    * Five of the 10 main index sectors advance
    * Gold-mining shares hit six-month high

    By John Tilak
    TORONTO, March 14 (Reuters) - Canada's main stock index was
little changed on Friday as anxiety about the Ukraine crisis
weighed broadly on the market but also stoked safe-haven buying
of bullion, which drove up gold-mining shares.
    Shares of gold producers, which are heavily weighted on the
Toronto stock market's benchmark index, climbed for a fourth
straight session and hit their highest level in more than six
months. They are up about 35 percent this year.
    Moscow sent more troops into Crimea on Friday and repeated
its threat to invade other parts of Ukraine, ignoring efforts by
the West to prevent the holding of a referendum in Crimea on
Sunday on separating from Ukraine and joining Russia.
 
    Worries about the volatile situation in Ukraine and fears of
a slowdown in the Chinese economy have gripped investors in
recent days, with the index dropping more than 70 points on
Thursday. 
    The benchmark index looked set to end the week slightly
lower, after posting gains in the five previous weeks. It is up
about 4.5 percent so far in 2014.
    "The market seems to be recovering from a one-day panic.
It's a good sign," said David Cockfield, managing director and
portfolio manager at Northland Wealth Management.
    "There's reason for concern about Ukraine and China, but the
market is handling it better than it has done in the past," he
added. "It shows that the markets are in firmer ground than they
were in the last couple of years."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 4.09 points, or 0.03 percent, at 14,249.23.
    "Our market will continue to outperform (U.S. stocks) in
2014," Cockfield said. "We've got more potential, our multiples
tend to be lower and the Canadian dollar seems to be reasonably
stable."
    Five of the 10 main sectors on the index were higher.
    Gains in the price of oil helped lift energy shares. In the
group, Canadian Natural Resources Ltd added 0.7 percent
to C$39.73, and Suncor Energy Inc rose 0.3 percent to
C$36.36.
    In the gold group, Goldcorp Inc advanced 1.2 percent
to C$32.03, and Barrick Gold Corp was up 0.7 percent at
C$23.14.
    Financials, the index's most heavily weighted sector,
declined 0.4 percent, with Royal Bank of Canada giving
back 0.5 percent to C$71.44.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.