CANADA STOCKS-Encana jumps but Yellen comments limit TSX gain

Wed May 7, 2014 11:16am EDT

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* TSX up 4.71 points, or 0.03 percent, at 14,617
    * Six of the 10 main index sectors decline
    * Talisman, Husky, Enbridge rise after results

    By John Tilak
    TORONTO, May 7 (Reuters) - Canada's main stock index was
little changed on Wednesday as comments from U.S. Federal
Reserve Chair Janet Yellen weighed on  sentiment, offsetting a
jump in shares of Encana Corp after the company signed
a deal to buy a U.S. shale oil assets.
    Yellen said the central bank will continue to provide a high
degree of monetary policy accommodation, but cited geopolitical
turmoil and weak housing data as risks to the U.S.
economy. 
    Encana gained 5.2 percent to C$25.83 after the company said
it is buying producing assets in the Eagle Ford shale field in
Texas from Freeport-McMoRan Copper & Gold for $3.1
billion, nearly doubling its oil output. 
    Investors also digested a wave of quarterly reports,
including several from energy companies. Shares of Talisman
Energy Inc, Husky Energy Inc and Enbridge Inc
 all advanced after they posted profits.
    The Canadian benchmark index is up more than 7 percent this
year. 
    "We're looking at a market that feels comfortable where it
is," said Fred Ketchen, director of equity trading at
ScotiaMcLeod. 
    "I won't be surprised if the market starts to show a little
bit of strength," he added. "But commodity prices are under
pressure." 
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 4.71 points, or 0.03 percent, at 14,617. Six of
the 10 main sectors on the index were in the red.
    The energy sector advanced 0.6 percent, with oil prices also
providing support.
    Talisman climbed 2.4 percent to C$11.40 after the company
posted a first-quarter profit, compared with a year-earlier
loss, as oil and natural gas liquids production in North America
soared 45 percent. 
    Husky reported a bigger-than-expected 24 percent rise in
first-quarter profit, helped by stronger prices for crude oil,
natural gas liquids and bitumen. The stock added 1.7 percent to
C$36.08. 
    Enbridge reported a 56 percent rise in quarterly profit,
sending shares of the pipeline company up 0.2 percent to
C$53.11. 
    But Tim Hortons Inc gave back 1.6 percent to
C$58.73 after the coffee and snacks chain reported results that
fell short of market expectations. 
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)
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