CANADA STOCKS-Yellen comments pull TSX to two-week high

    * TSX rises 86.81 points, or 0.63 percent, to 13,880.99 
    * Nine of the 10 main index sectors advance 
    * BlackBerry drops after BBM executive leaves 
 
    By John Tilak 
    TORONTO, Feb 11 (Reuters) - Canada's main stock index hit a 
two-week high on Tuesday after U.S. Federal Reserve Chair Janet 
Yellen calmed the markets with an assurance that the central 
bank's move to wind down its stimulus program is on track, 
signaling Fed confidence that the U.S. economy is growing. 
    Those comments, Yellen's first public remarks in her new 
post, helped drive gains in every major sector of the index and 
sent gold-mining shares to a five-month high. 
    Investors also cheered an attempt by Republicans in the 
House of Representatives to push forward legislation that 
extends U.S. borrowing authority for a year with no strings 
attached.    
    Yellen noted that the U.S. labor market recovery was "far 
from complete" and said there was a need to keep an eye on a 
broad range of labor market indicators, but in comments that 
were soothing to markets she stressed continuity with the 
policies of her predecessor, Ben Bernanke.    
    The benchmark Canadian index was up for a sixth straight 
session, and appeared to be showing signs of stabilizing after a 
volatile phase triggered by turmoil in emerging markets. 
    "Based on the market reaction, it sounds like (Yellen) has 
done a very good job of striking the right tone� and in terms of 
easing off the tapering but not pulling back so quickly that it 
creates market panic," said Atul Tiwari, managing director of 
Vanguard Investments Canada, a unit of Vanguard Group, which 
manages $2.6 trillion in global assets. 
    But he added a cautious note. "We're seeing a lot of 
volatility. In the near to medium term, our view on the global 
equity market has become more guarded," he said. "We encourage 
investors to be cautious about increasing their equity risk in 
the current environment." 
    The Toronto Stock Exchange's S&P/TSX composite index 
   closed up 86.81 points, or 0.63 percent, at 13,880.99. 
    Tiwari said he was seeing Canadian investors gravitate 
towards U.S. equities, citing Vanguard research based on ETF 
cash flows. Pressure on materials and energy stocks will weigh 
on Canadian equities this year, he said. 
    Nine of the 10 main sectors on the index were higher on 
Tuesday. 
    Financials, the index's most heavily weighted sector, added 
0.4 percent. Royal Bank of Canada    rose 0.2 percent to 
C$70.12, and Bank of Nova Scotia    climbed 0.4 percent to 
C$62.01. 
    Energy shares advanced 0.3 percent. In the group, Canadian 
Natural Resources Ltd    climbed 0.8 percent to C$37.67. 
    Shares of gold-mining companies surged 3.1 percent, a 
reflection of a jump in the price of bullion.  GOL/  Goldcorp 
Inc    was up 2.5 percent at C$29.47, and Barrick Gold Corp 
   rose 1 percent to C$21.56. 
    Detour Gold Corp shot up 11.8 percent to C$9.20, recording 
the biggest percentage gain on the index.  
    In corporate news, BlackBerry Ltd    said on Monday 
that Andrew Bocking, the executive in charge of its BBM instant 
messaging business, has left the company. The stock was down 1.4 
percent at C$10.77 on Tuesday. 
    ($1=$1.10 Canadian) 
 
 (Editing by Peter Galloway) 
 ((john.tilak@thomsonreuters.com)(1-416-687-7918)(Reuters 
Messaging: john.tilak.reuters.com@reuters.net)) 
  
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