TSX ends higher, helped by banks and energy shares
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index finished modestly higher on Tuesday after surging as much as 3 percent following China's decision to cut interest rates and banks' reserve requirement to kick-start economic growth.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 98.19 points, or 0.75 percent, at 13,150.93.
It had risen sharply at the open following Monday's global rout, as the People's Bank of China's 25 basis point cut in key rates and 50 basis points off the reserve requirement rate for large commercial banks helped global markets rebound.
The index's heavyweight financial and energy groups, up 2 percent and 1.5 percent respectively, helped steer it to a positive finish, as the price of oil recovered somewhat.
But jittery investors, knocked around by several sessions of sharp declines, were unwilling to make drastic moves.
"It's emotion, it's sentiment, and the market is getting pushed back and forth," said Rick Hutcheon, chief operating officer of RKH Investments. "Let the tidal wave, the tsunami play itself out and then we'll figure out what's going on."
Hutcheon said he has not sold a single share during the index's plunge and is very tempted to buy in at these levels.
"As soon as I get some sense of sanity and rational decision making, that's probably exactly what I'll do," he said. Continued...