Canadian stocks gained 97 points on Wednesday, buoyed by news
from the Federal Reserve that U.S. rates will remain unchanged, and
its bond purchase program will not be reduced, at least for the
foreseeable future. Canada stocks were down around 30 points around
the time of the news, and were up close to 130 points with an hour
to go before some profit taking effect. Most sectors were higher,
with Metals and Mining the biggest percentage gainer, up 2.8%, led
by gold stocks.
Most market participants were caught off guard as the Federal
Reserve announced that its bond purchase program would remain
unchanged, as opposed to the $10-15 billion dollar cut in purchases
expected by economists. The Fed's economic forecasts remained
steady, and according to Chairman Bernanke, the assessment of
current economic conditions did not warrant a change in monetary
Gold prices surged after the Fed announcement. Gold on the COMEX
exchange rallied $47.5 to close at $1,356.9.
B2Gold (BTO.TO) up 12.5% with more than 8 million shares traded
was most active share, with no fresh stock specific news driving
volume. IAMGOLD Corporation (IMG.TO) was the next most active
share. Today the company announced that it will be starting an
initial 2,000 to 4,000 meter drill program on Tolima's ANCAL
project, following the issuance last week of all necessary water
use permits from the local environmental authority. The stock
closed up 10% with 7 million shares changing hands.
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