CANADA STOCKS-TSX hits two-week high as Yellen remarks offer support

Reuters

* TSX rises 79.27 points, or 0.59 percent, to 13,449.93

* Nine of 10 main index sectors advance

* CGI Group jumps after posting results

By John Tilak

TORONTO, Nov 14 (Reuters) - Canada's main stock index

advanced to a two-week high on Thursday after Federal Reserve

head nominee Janet Yellen's indication of support for the U.S.

central bank's monetary stimulus program helped boost almost

every major sector.

The market also digested news that the euro zone economy

stagnated in the third quarter of the year, weighed by weakness

in both France and Germany.

Investors looking for signs of monetary policy direction

from Yellen got a taste of it from her prepared remarks released

on Wednesday.

Yellen, President Barack Obama's nominee to lead the Federal

Reserve, is expected to offer a strong defense on Thursday of

the central bank's aggressive monetary easing before a Senate

panel.

"She is considered a dovish candidate, which I think is

market-friendly," said Rick Hutcheon, president and chief

operating officer at RKH Investments. "It's probably bullish for

the market in the shorter term."

The timing of the implementation of any pullback in stimulus

could be less aggressive with Yellen at the helm, he added.

The Toronto Stock Exchange's S&P/TSX composite index

was up 79.27 points, or 0.59 percent, at 13,449.93,

after reaching 13,457.33, its highest level since Oct. 31.

Hutcheon sees the Canadian index climbing as resource stocks

benefit from growth in the global economy. "The Canadian market

and the Canadian economy (are) in a pretty good spot right now,"

he said.

Nine of the 10 main sectors on the index were higher on

Thursday.

Financial shares added 0.4 percent, with Royal Bank of

Canada rising 0.4 percent to C$71.33 and Toronto

Dominion Bank gaining 0.5 percent to C$97.18.

The materials sector, which includes mining stocks, climbed

as gold-mining stocks surged 2.5 percent, reflecting a jump in

the price of bullion.

Goldcorp Inc was up 2 percent, at C$25.80.

In corporate news, CGI Group Inc posted a

better-than-expected adjusted profit for the fourth quarter,

sending shares of the technology services company up 7 percent

to C$40.25.

Turquoise Hill Resources Ltd dropped 6.7 percent to

C$4.32 after the miner said that it planned a rights offering,

citing permitting issues that have delayed financing for the

expansion of its Oyu Tolgoi copper-gold mine in Mongolia run by

Rio Tinto.

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