Dundee Precious Metals Inc. rallied 4.9 percent after gold futures increased as much as 1.1 percent. Athabasca Oil Corp. fell 2.7 percent after Macquarie Group Ltd. reduced its rating to neutral from outperform.
The Standard & Poor’s/TSX Composite Index (SPTSX) increased 154.57 points, or 1.2 percent, to 13,334.73 at 4 p.m. in Toronto, the biggest jump since Oct. 10. The benchmark equity gauge has risen 1.6 percent this week, poised for its first week of gains since November.
“The uncertainty over tapering was more damaging than the actual event,” Bob Decker, a fund manager with Aurion Capital Management Inc. in Toronto, who helps manage about C$6 billion ($5.7 billion), said in a phone interview. “The Fed validated the view of the economy that most people have and this gives some encouragement that the risks are diminishing.”
The Fed announced plans to cut its monthly bond purchases to $75 billion from $85 billion, taking its first step toward unwinding the unprecedented stimulus that Chairman Ben S. Bernanke put in place to help the economy recover from the worst recession since the 1930s. Fed officials predicted the unemployment rate will fall as low as 6.3 percent by the end of next year, compared with a September projection of 6.4 percent to 6.8 percent.
Producers of raw materials in the S&P/TSX advanced 0.3 percent. Dundee Precious Metals Inc. jumped 4.9 percent to C$2.80. The S&P/TSX Gold Index slipped 0.5 percent. Gold futures for February delivery gained 0.4 percent to settle at $1,235 in New York.
Valeant Pharmaceuticals International Inc. rose 3.5 percent to a record C$120.03. The drugmaker has advanced 6.2 percent since Dec. 13 after this week announcing it will buy Solta Medical Inc., a medical-device manufacturer, for about $250 million.
WestJet Airlines Ltd. slipped 1 percent to C$27.60. The company is “exploring” a possible bid, Chief Executive Officer Gregg Saretsky said in an interview. American Airlines Group Inc. was required to give up 104 takeoff and landing slots at Reagan to settle an antitrust lawsuit filed by the U.S. government and complete its merger with US Airways Group Inc.
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