TSX rises to one-week high as banks gain, energy weighs

Tue Sep 20, 2016 4:46pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose to a one-week high on Tuesday as shares of banks and other financial sector companies climbed, while the energy sector weighed as oil prices hit six-week lows intraday.

The financials group, which accounts for 35 percent of the index's weight, gained 0.6 percent as investors braced for the outcomes of Federal Reserve and Bank of Japan policy meetings on Wednesday.

Royal Bank of Canada (RY.TO: Quote) advanced 0.4 percent to C$81.06 and Bank of Nova Scotia (BNS.TO: Quote) added 0.6 percent to C$70.43.

Today's rally shows that investors still have faith in major central banks to keep interest rates low, said Ian Scott, a portfolio manager at Manulife Asset Management.

The interest-rate-sensitive telecommunications sector rose 0.5 percent, while both the consumer discretionary and consumer staples sectors gained more than 0.8 percent and technology stocks advanced 1.3 percent.

"There has just been a shift toward some info-tech (information technology stocks) lately in general because they do have some good growth," Scott said.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 25.75 points, or 0.18 percent, at 14,521.98. It touched its highest since Sept. 12 at 14,573.25.

Seven of the index's 10 main groups ended higher.   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014.   REUTERS/Mark Blinch