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CANADA STOCKS-TSX climbs as gold stocks rally on cautious Yellen

Published 2016-03-29, 04:47 p/m
© Reuters.  CANADA STOCKS-TSX climbs as gold stocks rally on cautious Yellen
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(Adds portfolio manager quotes, details on gold stocks, the
consumer discretionary and industrial groups and SNC Lavalin,
updates prices)
* TSX up 36.04 points, or 0.27 percent, at 13,426.23
* Six of the TSX's 10 main groups rise

By Fergal Smith
TORONTO, March 29 (Reuters) - Canada's main stock index rose
on Tuesday, reversing earlier losses as dovish comments from
Federal Reserve Chair Janet Yellen helped support gold mining
stocks.
Yellen said the U.S. central bank should proceed
"cautiously" as it looks to raise interest rates, because
inflation has not yet proven durable against the backdrop of
looming global risks to the U.S economy.
The Fed's cautious stance is "great for asset prices for now
and as an asset manager we are going make sure we take
advantage," said Diana Avigdor, head of trading at Barometer
Capital Management.
Although she worries that "it is not working to actually
spur top line growth in companies."
The materials group rose 2.7 percent, led by gold mining
stocks. Franco-Nevada Corp FNV.TO rose 4.3 percent to C$83.56,
while Kinross Gold was up 10.5 percent at C$4.41.
Spot gold XAU rose 1.6 percent as lower interest rates
reduced the opportunity cost of holding non-yielding bullion.
GOL/
The shares of Amaya Inc AYA.TO rose 12.8 percent to
C$16.70 after the gambling website operator said its chief
executive was taking an indefinite paid leave of absence.

Consumer discretionary stocks rose 0.8 percent, while
industrials advanced 0.7 percent.
Australia's Qube Holdings Ltd QUB.AX and Canada's
Brookfield Asset Management Inc BAMa.TO are raising a A$1
billion ($753 million) loan to help pay for the ports business
of Asciano Ltd AIO.AX , in a carve-up of Australia's largest
ports and rail operator, people familiar with the transaction
said.
The shares of Brookfield rose 0.9 percent to C$44.90.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 36.04 points, or 0.27 percent, at 13,426.23.
It touched its highest since March 23 at 13,443.80.
Six of the index's 10 main groups were higher.
Among the drags on the index were energy and financial
sector stocks.
The energy group fell 0.6 percent, pressured by the drop in
oil prices. U.S. crude CLc1 prices settled at $38.28 a barrel,
down 2.8 percent.
The heavyweight financials group was down 0.2 percent,
including a decline in the shares of life insurance companies.
Valuation concerns and low net interest margins are
headwinds for the financials group, said Avigdor.
SNC Lavalin Group Inc SNC.TO is expecting record revenues
this year from its Middle East energy operations despite
sluggish oil prices, an executive from the global construction
and engineering firm said.
Still, the company's shares dipped 0.2 percent to C$46.57.

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