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CANADA STOCKS-TSX rises as oil boosts energy stocks after Fed

Published 2016-03-16, 04:49 p/m
© Reuters.  CANADA STOCKS-TSX rises as oil boosts energy stocks after Fed
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(Adds portfolio manager comment, Fed news; updates prices to
close)
* TSX ends up 77.82 points, or 0.58 percent, at 13,478.13
* Six of the TSX's 10 main groups rise

By Alastair Sharp
TORONTO, March 16 (Reuters) - Canada's main stock index rose
on Wednesday as energy companies gained, albeit less than oil
prices, as the U.S. dollar plunged after the Federal Reserve cut
the number of rate hikes it expects to implement this year.
Gold miners also surged as the precious metal jumped on the
Fed news. GOL/
U.S. oil prices jumped almost 6 percent, boosted by the
Fed's greenback-weakening stance as well as firmer plans from
major producers to discuss an output freeze and slower growth in
U.S. crude stockpiles. O/R
Canada's energy sector rose a more modest 1.5 percent, which
Norman Levine, managing director at Portfolio Management Corp,
said could be partially explained by a strong recent rally in
the stocks.
"Mining stocks and oil stocks have had big runs already,
they're up some here, not huge," he said.
The materials sector, which includes precious and base
metals miners and fertilizer companies, added 3.6 percent.
The most influential gainers on the index included Canadian
Natural Resources CNQ.TO , up 2.9 percent to C$36.22, and
Suncor Energy Inc SU.TO , which added 1 percent to C$36.12.
Barrick Gold Corp ABX.TO jumped 5 percent to C$19.93 and
Goldcorp Inc G.TO gained 4.1 percent to C$22.30.
The U.S. central bank said moderate U.S. economic growth and
"strong job gains" would allow it to tighten policy this year,
but said it expects two quarter-point hikes in 2016, versus the
four projected in December.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 77.82 points, or 0.58 percent, at 13,478.13.
Six of the index's 10 main groups were in positive
territory, with advancers outnumbering decliners by 2.4-to-1.
Canadian manufacturing sales rose far more than expected at
the start of the year, driven by a jump in sales of motor
vehicles, auto parts and food, data from Statistics Canada
showed on Wednesday. ECONCA
Encana Corp ECA.TO gained 9.1 percent to C$7.94 after
rating agency Fitch assigned the company a first-time rating of
BBB- on Tuesday with a negative outlook.

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