3 Min Read
TORONTO (Reuters) - Canada's main stock index rose to its highest in almost six years on Wednesday, boosted by positive data on U.S. services sector growth and a decision by the Bank of Canada to leave interest rates unchanged.
Figures from the Institute for Supply Management showed that its U.S. services sector index rose in May to a nine-month high, calming concerns about the prospects of the world's biggest economy.
The Canadian central bank held its main interest rate at 1 percent and said the risks of low inflation loom as large as ever despite a faster-than-expected rise in prices, remarks that some economists interpreted as dovish.
Copper futures were down 1.2 percent, weighing on shares of miners such as Teck Resources Ltd TCKb.TO and First Quantum Minerals Ltd (FM.TO).
The Toronto market has climbed in each of the last four sessions and is up more than 8 percent so far this year.
“We’re seeing some positive momentum on the TSX,” said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.
“The index is being driven by a combination of favorable fundamentals – policy that is still stimulative, strong earnings growth and very little risk of inflation," he added.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 62.10 points, or 0.42 percent, at 14,796.79. Eight of the 10 main sectors making up the index were higher.
Financials, the index's most heavily weighted sector, climbed 0.6 percent. Manulife Financial Corp (MFC.TO) gained 0.9 percent to C$20.69, and Toronto Dominion Bank (TD.TO) was up 0.6 percent, at C$54.70.
Shares of energy producers rose 0.6 percent despite lower oil prices. Suncor Energy Inc (SU.TO) added 0.8 percent to C$42.55, and Canadian Natural Resources Ltd (CNQ.TO) advanced 0.8 percent to C$45.51.
Among mining stocks, First Quantum lost 1.9 percent to C$22.13 and Teck gave back 1.5 percent to C$23.83.
In corporate news, shares of Canaccord Genuity (CF.TO) gained 1.2 percent to C$11.21 after the company reported quarterly results late on Tuesday.
Editing by Jonathan Oatis and Steve Orlofsky