CANADA STOCKS-TSX climbs on Yellen comments; Talisman, Encana jump

Wed May 7, 2014 4:57pm EDT

* TSX up 44.11 points, or 0.30 percent, at 14,656.40
    * Eight of 10 main index sectors advance
    * Talisman, Husky, Enbridge rise after results

    By John Tilak
    TORONTO, May 7 (Reuters) - Canada's main stock index
advanced on Wednesday as market-supportive comments from U.S.
Federal Reserve Chair Janet Yellen helped fuel gains in energy
and financial shares.
    Yellen said the central bank will continue to provide a high
degree of monetary policy accommodation, while citing
geopolitical turmoil and weak housing data as risks to the U.S.
economy. 
    Encana Corp gained 4.6 percent to C$25.69 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 about 7.6 percent this
year. The market ended higher after volatile trading, following
declines in the previous two sessions.
    "This is a movie that we've seen before," said Adrian
Mastracci, portfolio manager at KCM Wealth Management. "It has
got a dual plot. The playbook is optimistic one day and
pessimistic the next day."
    "We accept that it will be slow, wobbly growth and wrapped
up in some turmoil and uncertainty," he said, adding that
investors should counter increasing market volatility with
diversification.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 44.11 points, or 0.30 percent, at 14,656.40.
    Mastracci expects the TSX to be driven this year primarily
by economic growth in the United States, Canada's biggest trade
partner.
    Eight of the 10 main sectors on the index were higher on
Wednesday.
    Financials, the index's most heavily weighted sector, added
0.4 percent, with Manulife Financial Corp rising 1.1
percent to C$20.59.
    The energy sector advanced 0.7 percent, with oil prices also
providing support.
    Talisman shot up 8 percent to C$12.02 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. The stock had the biggest positive influence
on the market. 
    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 1.9 percent to
C$36.15. 
    Enbridge reported a 56 percent rise in quarterly profit,
sending shares of the pipeline company up 0.6 percent to
C$53.31. 
    But Tim Hortons Inc gave back 1.3 percent to
C$58.89 after the coffee and snacks chain reported results that
fell short of market expectations. 
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway and Chris Reese)
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