* TSX rises 55.85 points, or 0.41 percent, to 13,638.14
* Nine of 10 main index sectors advance
* First Quantum up after raising Cobre Panama output outlook
By John Tilak
TORONTO, Jan 28 Canada's main stock index firmed
on Tuesday after concerns about emerging markets eased for the
moment, with investors looking ahead to a U.S. Federal Reserve
meeting and a Turkish central bank decision for signs of
monetary policy direction.
Fears about China's economic growth and another possible
move by the Fed to scale back its stimulus have been weighing on
investor sentiment since last week. Further, recent sharp drops
in the Argentine peso and the Turkish lira threw global markets
The markets remained jittery ahead of a decision by Turkey's
central bank about whether to raise interest rates in an attempt
to stabilize the currency.
After a solid rebound in the second half of 2013 and a
promising start to the current year, the Toronto market recorded
two of its biggest single-day drops in recent months in the
previous two sessions.
Some market analysts were cautious about Tuesday's gains.
"There is not a lot of confidence that this move back up is
sustainable. It's going to tread water for a while," said Ian
Nakamoto, director of research at MacDougall, MacDougall &
MacTier. "We've had such a strong market performance that we're
due for some sort of a correction."
Nakamoto expects the recent weakness in the Canadian dollar
to benefit the country's export-driven companies and sees the
TSX ending the year higher.
The Toronto Stock Exchange's S&P/TSX composite index
was up 55.85 points, or 0.41 percent, at 13,638.14.
Nine of the 10 main sectors on the index were higher.
Financials, the index's most heavily weighted sector, gained
0.2 percent, with Manulife Financial Corp adding 1.1
percent to C$20.78.
Shares of energy companies rose 0.7 percent, helped by
higher oil prices. Canadian Natural Resources Ltd
advanced 1.5 percent to C$35.90 and was one of the most
influential gainers on the index.
The materials sector, which includes mining stocks, added
0.8 percent. Barrick Gold Corp climbed 1.2 percent to
C$20.86, and Teck Resources Ltd advanced 1.4 percent
In corporate news, First Quantum Minerals Ltd said
its Cobre Panama project in Central America should produce about
20 percent more copper than previously planned, but initial
production will be delayed and development costs will be higher.
The stock rose 0.9 percent to C$20.01.