TSX regains some ground, but Fed spurs big weekly loss

Canada's main stock index ended higher on Friday on gains in banks and gold miners, but recorded its third straight week of heavy losses as the US Federal Reserve's signal of a coming pullback of its easy money policy spooked investors. The change in Fed direction outlined on Wednesday sent shockwaves through the financial system, with bond yields spiking and global stock markets suffering a two-day plunge.
Trading on Friday swung widely as markets sought to stabilise. The Toronto index rose as high as 12,067.54 and at one point fell to 11,935.72. "We've been used to (the volatility). A fact of life for markets today. We're going into a new environment and no one likes uncertainty," said John Ing, president of Maison Placements Canada.
"The reality has set in that tighter money, higher rates are in the offing. Unfortunately, we've not been able to address some of the problems which prompted the easing, therefore, the volatility," Ing said. The index's financial group edged up 0.1 percent on a rebound in bank shares, but weakness among insurance companies offset gains. Sun Life Financial slid 2.2 percent to C$30.19, while Manulife Financial Corp declined 0.5 percent to C$16.72. Among the banks, Toronto-Dominion Bank gained 0.8 percent to C$81.30, and Bank of Nova Scotia added 0.8 percent to C$55.83.
The materials sector rose 1.3 percent as heavyweight gold mining stocks Goldcorp Inc and Barrick Gold Corp both gained even though bullion had its sharpest weekly drop in nearly two years. The Toronto Stock Exchange's S&P/TSX composite index ended up 27.09 points, or 0.23 percent, at 11,995.66. Six of the index's 10 main groups were positive. Energy stocks dipped 0.03 percent on weaker oil prices, led lower by TransCanada Corp's 's 2.2 percent fall to C$46.00, and by Canadian Natural Resources, which fell 0.8 percent to C$29.37. Cenovus Energy Inc lost 0.9 percent to trade at C$29.58. Telecoms companies were well-represented at the top of the table, with Rogers Communications Inc up 3.7 percent at C$46.45 and BCE Inc up 1 percent at C$43.60.