2011年5月1日星期日

TSX cuts loss as gold rebounds (Reuters)

TORONTO (Reuters) - main stock of Toronto low index closed Wednesday, but cut most of its losses early in the session, supported by a bounce-back in the questions of the extraction of gold and the signals of the Federal Reserve that it would maintain its support for the US economy.

The index took its landmark Wall Street and the oil price, which pushed higher after the Fed said that he believed that economic recovery was proceeding at a moderate pace, with little risk taking an inflationary psychology hold. Gold also a record increase of nearly $ 1 530 an ounce and silver jumped to 6 percent.

After a two-day meeting, the policy-making Federal Open Market Committee stated that it intends to complete its program of liaison-purchase of 600 billion in June, as planned.

Fed Ben Bernanke, Chairman of first press conference resulted in no serious flagging optimism, while earnings reports impressed investors in the Canada and the United States.

"I think that some news that we have seen today involves the market will continue to grow moderately,", said Pat McHugh, Senior Portfolio Manager and strategist of the fairness of Manulife Asset Management. "If anything, I think that consensus view is that the pace of economic growth is slow while we proceed until 2011 and that there is not that we see today really changes all.".

S & P/TSX of the Toronto Stock Exchange composite index ended only, 16,53 points lower, or 0.12%, to 13,892.57, rebound strongly after the fall of 1% to 13,770.81, its lowest in a week. Seven of the ten lowest end TSX sectors.

Materials Group eventually 0.61% and its subgroup of gold extraction completed 1.66 percent higher after seesawing through the session.

Barrick Gold Corp had been a top decliner having announced Monday a friendly agreement c 7.3 billion to buy copper ores undermine Equinox, but ends at 1.24% to C$ 48.34. He reports of increased 22 per cent in quarterly earnings Wednesday, in large part by the rise in the bullion price.

Other gold producers have also increased with Kinross 2.8 per cent to C$ 14.90 while Eldorado Gold added 2.87% to C$ 17.20.

The benefits of business more follow also, including Husky Energy Inc., which reported a jump of 70 percent in the first quarter profit, sending its shares up 0.77% to C$ 28.71.

ELECTION WATCH

The growing popularity of the new democratic party in the preparation for the election of 2 may in the Canada has been cited as a reason for the weakness of the start on the overall index.

The growing support for a party of the left which provides to increase corporate taxes, spend more, and make energy policy could cause other weakness in the short term in Toronto's main stock index, said analysts.

"Conservatives can achieve a majority on election day but now it looks like another minority Conservative Government...". "No one wants another election, we had a lot, it is the frustrating part," said John Kinsey, portfolio at Caldwell Securities Manager.

But the corporate results are likely to outweigh any short-term weakness from the federal election of bet, said McHugh, noting that the main Toronto index surpassed U.S. peers in recent sessions because his earnings season has not run deep still. U.S. gains had a positive effect on the U.S. indices.

"I see no reason why things should be different to the Canada." "We should have results as well good earnings and the market will focus on that", he said. "If the market not, to my mind, goes to pay much attention to the fact that the NDP are in second place."

(Reported by Ka Yan Ng; editing by Peter Galloway and Rob Wilson)


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