(Adds portfolio manager comment, Fed news, updates prices to
* TSX ends up 188.84 points, or 1.30 percent, at 14,710.82
* All of the TSX's 10 main groups move higher
By Alastair Sharp
TORONTO, Sept 21 Canada's main stock index
notched its highest close in almost two weeks on Wednesday as
gold miners surged after the U.S. Federal Reserve held interest
rates steady, which also boosted shares of dividend-paying
Adding to the upward momentum, energy companies gained as
oil prices rose sharply after a third surprise weekly drop in
U.S. crude stockpiles.
The Toronto Stock Exchange's S&P/TSX composite index
ended up 188.84 points, or 1.30 percent, at 14,710.82,
its highest finish since Sept. 8. All of the index's 10 main
The Fed strongly signaled it could still tighten monetary
policy by the end of this year, while three dissenters said they
favored raising rates this week.
"The market will see this as a continuation of the standard
operating procedure thus far, namely that rates are lower for
longer, that this is a very cautious Fed," said John Stephenson,
president at Stephenson & Company Capital Management.
"I think the reality is this is a Fed that is more
market-dependant than it is data-dependant," he added.
The materials group, which includes precious and base metals
miners and fertilizer companies, jumped 4.6 percent, as the Fed
news helped extend gold's gains after the Bank of Japan earlier
adopted a target for long-term interest rates.
Barrick Gold Corp surged 7.9 percent higher to
C$24.51 and Goldcorp Inc advanced 6.2 percent to C$22.06.
The energy group rose 1.8 percent, with Canadian Natural
Resources Ltd up 1.7 percent at C$39.33 and Suncor
Energy Inc adding 1 percent to C$34.40.
Industrials rose 1.2 percent, including gains for railroad
stocks, while financials advanced 0.6 percent.
Utilities gained 1 percent as the Fed hold pushed investors
back towards stocks that offer yield.
"There are no bargains out there. The yield plays in general
have been picked over, so it's very hard to find something
that's attractive for a yield perspective that's also attractive
from a valuation perspective," Stephenson said.
BlackBerry Ltd shares rose 2.2 percent to C$10.20.
The company has agreed to offer anti-hacking software from a
startup that last year discovered a major Android bug, it said,
as the once-dominant smartphone company seeks to leverage ties
to corporate and government clients to boost its software
The value of Canadian wholesale trade rose in July for the
fourth consecutive month, posting a 0.3 percent gain on strength
in the motor vehicle and parts subsector, Statistics Canada
(Reporting by Fergal Smith; Editing by Chris Reese and Meredith