(Adds portfolio manager quotes, details on background, Fairfax
Financial and Teck Resources; updates prices)
* TSX closes up 23.11 points, or 0.15 percent, at 15,292.96
* Just three of the TSX's 10 main groups gain
By Fergal Smith
TORONTO, Dec 20 Canada's main stock index rose
for the fourth straight day on Tuesday, clawing back much of its
losses after the Federal Reserve raised U.S. interest rates, as
gains for financials and materials offset losses for defensive
The Toronto Stock Exchange's S&P/TSX composite index
closed up 23.11 points, or 0.15 percent, at 15,292.96.
The index has climbed 17.5 percent this year, with an
agreement by major oil producers to cut output and the prospect
of U.S. economic stimulus giving the rally some recent
"There are probably some significant (investor) accounts out
there who are under-owned in equities and are looking for
opportunities... buying where they feel there is a further move
to be had," said Peggy Bowie, senior trader at Manulife Asset
One sector in which investors are underinvested is
financials, Bowie said.
"They see that (sector) as moving up significantly over the
next year, both in Canada and in the United States."
The financials group rose 0.4 percent, led by Fairfax
Financial Holdings Ltd, which rebounded nearly 5
percent to C$635.00 after falling 1.5 percent on Monday.
The insurance company said on Sunday it has agreed to buy
Swiss insurer Allied World Assurance Company Holdings AG
for $4.9 billion in cash and stock.
Shares of label and packaging maker CCL Industries Inc
surged 19.6 percent to C$271.19. The company said on
Monday it would acquire the U.K.-based Innovia Group of
companies for about C$1.13 billion.
Teck Resources Ltd climbed 4.4 percent to
C$28.79, but some gold miners lost ground as gold
The overall materials group, which includes precious and
base metals miners and fertilizer companies, gained 1.3 percent.
Seven of the index's 10 main groups ended lower, including
losses for defensive sectors, such as telecoms, utilities and
"People will move out of those sectors into financials and
other sectors that they feel have more growth opportunity going
forward," Bowie said.
BlackBerry Ltd reported better-than-expected
adjusted earnings and raised its full-year growth forecast,
though concerns about overall revenue growth reversed early
share gains. The smartphone pioneer lost 0.1 percent at C$10.02.
Energy dipped 0.3 percent as some early gains for oil were
pared after Libya announced the reopening of pipelines after a
two-year blockade that ended earlier this month.
U.S. crude prices settled 11 cents higher at $52.23 a
(Reporting by Fergal Smith; Editing by Paul Simao)