CANADA STOCKS-TSX jumps on Fed comments, China data

Wed Apr 16, 2014 4:58pm EDT

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* TSX rises 142.60 points, or 1 percent, at 14,446.52
    * All of 10 main index sectors advance
    * Metro jumps after posting results

    By John Tilak
    TORONTO, April 16 (Reuters) - Canada's main stock index
recorded its biggest single-day jump in more than two months on
Wednesday, driven higher by supportive comments on U.S.
employment by Federal Reserve Chair Janet Yellen and bullish
economic data from China.
    Yellen said the U.S. economy appeared to be slowly moving
toward full employment, but that it would need help from the
central bank for some time to come. 
    Data showed a 7.4 percent expansion in the Chinese economy
in the first quarter. While the growth was at its slowest pace
in 18 months, the fact that it managed to top market
expectations was enough to cheer investors. 
    Investors also digested news that the Bank of Canada held
its benchmark interest rate at 1 percent, as expected, but the
central bank's head Stephen Poloz said an interest rate cut was
still a possibility. 
    The Toronto market climbed for a third straight session and
is up about 6 percent this year.
    "That momentum seems to be growing," said Marcus Xu,
president and portfolio manager at MY Capital Management Corp in
Vancouver.
    "It looks like the U.S. economic recovery is doing really
well, Canada may change rates and a lot of foreign investors are
buying Canadian stocks," he added. Xu expects the TSX to
outperform the S&P 500 this year.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 142.60 points, or 1 percent, at 14,446.52.
All of the 10 main sectors on the index were higher. 
    Financials, the index's most heavily weighted sector, rose
0.8 percent. Toronto Dominion Bank climbed 0.8 percent
to C$51.65, and Bank of Nova Scotia advanced 0.8
percent to C$65.15.
    Shares of energy producers were up 1.5 percent. Suncor
Energy Inc added 2 percent to C$40.14, and Canadian
Natural Resources Ltd gained 0.7 percent to C$44.08.
    In corporate news, Metro Inc shares jumped 2.5
percent, to C$65.86, after the grocer reported a
higher-than-expected quarterly profit and raised its dividend.
 
    Osisko Mining Corp said it has reached a C$3.9
billion ($3.6 billion) deal to sell most of its assets to Yamana
Gold Inc and Agnico Eagle Mines Ltd as it
battles to thwart a hostile takeover bid from Goldcorp Inc
. 
    Osisko's shares jumped 6.9 percent to C$7.94, and Goldcorp
was up 0.9 percent at C$26.22. But Yamana gave back 3.8 percent
to $8.83, and Agnico lost 8.2 percent to C$30.71. 

 (Editing by Meredith Mazzilli and Grant McCool)
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