(Adds analyst quotes, details on Federal Reserve, Bombardier,
updates prices)
* TSX up 46.45 points, or 0.38 percent, at 12,377.77
* Half of the TSX's 10 main groups move higher
* Bombardier fell below C$1 for the first time since 1991
By Fergal Smith
TORONTO, Jan 27 (Reuters) - Canada's main stock index
rallied on Wednesday as strength in crude oil prices supported
energy and banking stocks, although paring gains after the U.S.
Federal Reserve interest rate decision.
The index extended its recovery from a recent three-year
low, touching its highest level since Jan. 8 at 12,524.13.
It is still reflecting "the positive price action out of the
oil commodity," said Sid Mokhtari, market technician and
director, institutional equity research at CIBC World Markets.
U.S. crude CLc1 prices settled at $32.30 a barrel, up 2.7
percent after Russia said it was discussing the possibility of
co-operation with the Organization of the Petroleum Exporting
Countries. O/R
But the U.S. Federal Reserve frustrated investors hoping for
a strong sign it might scale back future interest rate hikes
because of recent financial and economic turmoil.
The financial services index rose 1.3 percent. It included a
1.7 percent advance for Toronto-Dominion Bank TD.TO to
C$51.72, while Royal Bank of Canada RY.TO was up 1.5 percent
at C$68.63.
Canadian Natural Resources Ltd CNQ.TO rose 4.8 percent to
C$27.68. The overall energy group was up 1.5 percent.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 46.45 points, or 0.38 percent, at 12,377.77.
Five of the index's 10 main groups were in positive territory.
Recent recovery in the Canadian dollar has added to support
for Canadian stocks, according to Mokhtari. The currency made a
three-week high before reversing lower.
"Many foreign flows have left Canada because of the
devaluation of the currency," said Mokhtari.
Rising sales in export markets for information technology
company CGI Group Inc GIBa.TO helped boost its shares 4.0
percent to C$57.72.
Gold stocks rallied as gold climbed to a 12-week high.
Barrick Gold Corp ABX.TO rose 3.7 percent to C$13.89, while
spot gold XAU= was up 0.4 percent at $1,124.93 an ounce.
GOL/
A disappointing earnings report pushed Rogers Communications
Inc RCIb.TO stock down 5.4 percent to C$48.13.
Shares of train and plane maker Bombardier BBDb.TO fell
below C$1 for the first time since 1991, reflecting the
company's struggle to find customers for its new CSeries planes.
The stock has fallen 26 percent since the start of 2016, and
closed at C$0.99, down 2.0 percent.
The most influential drags also included convenience store
operator Alimentation Couche-Tard ATDb.TO , which fell 3
percent to C$60.28, and Tim Hortons and Burger King owner
Restaurant Brands International QSR.TO , which lost 3.7 percent
to C$46.33.