* TSX rises 5.34 points, or 0.04 percent, to 12,587.09
* Six of 10 main sectors advance
* Talisman drops after quarterly loss
By John Tilak
TORONTO, July 31 Canada's main stock index was
little changed on Wednesday as investors looked to a Federal
Reserve meeting for direction about the U.S. central bank's
monetary stimulus program.
Gains in financial and energy shares offset by weakness in
Potash Corp, which extended its declines after news of
the breakup of a Russian-Belarusian potash joint venture on
Tuesday sent shockwaves through the industry.
U.S. stocks gained modestly after data showing U.S. economic
growth unexpectedly accelerated in the second quarter, laying a
firmer foundation for the rest of the year that could bring the
Federal Reserve a step closer to cutting back its monetary
The Fed is expected to decide at the end of the policy
meeting to continue buying bonds at an $85 billion monthly pace.
Fed Chairman Ben Bernanke "is going to choose his words
very carefully, say things are improving but not roaring ahead,"
said David Cockfield, managing director and portfolio manager at
Northland Wealth Management.
"He'll say, 'We're going to keep interest rates low and
stick to our guns on keeping the quantitative easing program
running until we feel that there's stronger growth'," he added.
Cockfield does not expect the bond buying to ease in
September and says Bernanke will prepare the market for that.
The Toronto Stock Exchange's S&P/TSX composite index
was up 5.34 points, or 0.04 percent, at 12,587.09.
Six of the 10 main sectors on the index were higher.
Financials, the index's most heavily weighted sector, added
Royal Bank of Canada, the country's biggest lender,
gained 0.2 percent to C$65.00.
Shares of energy producers rose 0.3 percent, with Canadian
Natural Resources Ltd climbing 1.4 percent to C$32.09.
But Talisman Energy Inc posted a surprise
second-quarter loss and said it now expects full-year production
to be at the lower end of its earlier forecast range due to a
drop in output from its North Sea operations. The stock fell 2.1
percent to C$11.69.
The materials sector, which includes mining stocks, lost 1.1
percent. Potash gave back 4.5 percent to C$31.21 and had the
biggest negative influence on the market.
Gold miners such as Barrick Gold Corp, down 1.8
percent at C$17.41, also declined.
In other news, Torstar Corp warned that print
revenue would remain under pressure in the second half of the
year, after reporting a fifth straight fall in quarterly profit.
Shares of the owner of Canada's largest daily newspaper by
circulation fell 6.1 percent to C$5.59.