CANADA STOCKS-TSX climbs as Fed comments ease market concerns

Wed Jul 9, 2014 4:38pm EDT

* TSX up 78.01 points, or 0.52 percent, at 15,215.19
    * Nine of the 10 main index sectors advance
    * Potash Corp among top decliners

    By John Tilak
    TORONTO, July 9 (Reuters) - Canada's main stock index
advanced on Wednesday as minutes from the U.S. Federal Reserve's
June meeting offered details about its stimulus program
phase-out and more clarity on its ideas about raising interest
rates, helping lift investor sentiment.
    The Toronto stock market's benchmark index dropped in the
previous two sessions as concern spread that corporate earnings
may not match expectations this quarter and justify the recent
runup in share prices. The index is up about 12 percent this
year.
    The Fed minutes showed it has begun detailing how it plans
to ease the U.S. economy out of an era of loose monetary policy,
indicating it will end its asset purchases in October and that
Fed officials appear near agreement on a plan to manage interest
rates in the future. 
    "They are likely to remain dovish," said Philip Petursson,
managing director, portfolio advisory group, at Manulife Asset
Management. "The market is taking that as good news, that we're
going to see low interest rates for a considerable amount of
time."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 78.01 points, or 0.52 percent, at 15,215.19.
Nine of the index's 10 main sectors were higher.
    The gold-mining sector jumped 2.5 percent, reflecting a rise
in the bullion price. Goldcorp Inc climbed 1.6 percent to
C$30.19 and Barrick Gold Corp gained 1 percent to
C$20.14.
    Financials, the index's most heavily weighted sector,
advanced 0.6 percent. Royal Bank of Canada climbed 0.9
percent to C$78.50, and Bank of Nova Scotia added 0.4
percent to C$72.16.
    In corporate news, Potash Corp's chief executive
said on Tuesday he will stick with the fertilizer producer's
focus on supporting the price of potash by matching output of
the crop nutrient to demand, rather than maximizing sales volume
to fend off competition. 
    The stock was down 1.1 percent at C$38.98 on Wednesday. 
    ($1=$1.07 Canadian)

 (Editing by Peter Galloway)
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