CANADA STOCKS-TSX rises sharply as Bernanke comments soothe

* TSX up 185.74 points, or 1.59 percent, at 11,838.92

* Fed to provide more monetary accommodation if needed

* All of TSX main sectors higher
(Updates to midday, adds quote)

By Jennifer Kwan

TORONTO, Aug 27 (BestGrowthStock) – Toronto’s main stock index rose
sharply on Friday, led by gains in resource and financial
issues, after Federal Reserve Chairman Ben Bernanke said the
U.S. central bank was ready to take further steps to aid the
recovery.

Bernanke said on Friday the recovery has softened more than
expected and the Fed is ready to take further steps if needed
to spur the stumbling U.S. economy. [ID:nN27259859]

The comments sent the broader TSX index sharply higher, led
by its three main sectors: energy, financials and materials.
The resource-laden market was also supported by strong oil,
gold and base metal prices. [O/R] [GOL/] [METL/]

Suncor Energy (SU.TO: ) rose 1.6 percent to C$32.67 and Royal
Bank of Canada (RY.TO: ) climbed 2.5 percent to C$50.16. Goldcorp
(G.TO: ) was up 1.4 percent at C$46.49 and Teck Resources
(TCKb.TO: ) was higher by 3.1 percent at C$34.60.

The big issue that has been weighing on markets recently
has been the idea that the U.S. economy will grow very slowly,
or even see a double-dip recession, said Julie Brough,
vice-president at Morgan Meighen & Associates.

“The fact that he’s basically putting out there that they
will keep priming the pump as long as they need to, and as
aggressively as they need to, takes away some of those fears of
a double dip or a very slow period economically,” she said.

At 12:16 a.m. (1616 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was up 185.74 points, or 1.59
percent, at 11,838.92, with all of its 10 main sectors higher.

Even before Bernanke’s comments, the TSX had risen on
revised quarterly growth figures that showed the U.S. economy
was performing better than anticipated. [ID:nN26193565]

In individual company news, Potash Corp (POT.TO: ) gained 1.4
percent to C$155.51 after falling for three days as investors
continued to watch closely for developments around BHP
Billiton’s $39 billion takeover offer.

BHP’s chief executive is expected to fly to North America
this week to mount a charm offensive to woo Potash
shareholders, as a potential Chinese rival reiterated it was
closely watching developments. [ID:nN26228720]

Research In Motion (RIM.TO: ), down 1.8 percent at C$48.76,
also remained in the spotlight. India may extend an Aug. 31
deadline in its standoff with the BlackBerry maker over access
to encrypted data, if RIM says it has a solution and asks for
time, a government source said on Friday. [ID:nLDE67Q1B5]
[ID:nN26274695]

($1=$1.05 Canadian)
(Reporting by Jennifer Kwan; editing by Rob Wilson)

CANADA STOCKS-TSX rises sharply as Bernanke comments soothe