TSX rises to 11-month high, led by financials

Wed Jul 20, 2016 4:49pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose to an 11-month high, then retraced gains to end barely higher on Wednesday, with gains for railways and banks offset by sharp losses among gold miners.

Shares in Canadian Pacific Railway Ltd CP.TO jumped 5.5 percent to C$196.26 after the company said it expects volumes to improve in the second half, especially in grains.

Its larger rival Canadian National Railway Co CNR.TO added 1.9 percent to C$83.13. The pair helped push the industrials group up 1.9 percent overall.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 8.96 points, or 0.06 percent, at 14,533.57. It touched its highest since Aug. 5 at 14,567.35.

"Stock markets around the world are at all time highs and no one is that excited about it," said James Winckler, research associate at MacNicol and Associates Asset Management.

"To feel great about the Canadian stock market you need to see a meaningful turnaround in oil and commodities in general, and that's going to hinge on a turnaround in global growth, which I don't believe has occurred," he said.

While eight of the index's 10 main sectors rose and advancers outnumbered decliners by a 1.8-to-1 ratio, losses for gold miners weighed heavily as gold hit a three-week low.

Barrick Gold Corp (ABX.TO: Quote) slumped 7.4 percent to C$26.00 and Goldcorp Inc (G.TO: Quote) fell 5.5 percent to C$23.46.   Continued...

 
A TMX Group sign, the company that runs the Toronto Stock Exchange (TSX), is seen in Toronto, June 23, 2014.  REUTERS/Mark Blinch