WRAPUP 3-Canada currency falls but stocks edge higher after Trump win

Wed Nov 9, 2016 5:37pm EST
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(Adds portfolio manager quotes and updates market reaction)

By Alastair Sharp and Fergal Smith

TORONTO Nov 9 (Reuters) - Canada's currency ended lower on Wednesday while shares of energy producers and financials pushed the country's stock market slightly higher, as investors saw a Donald Trump presidency favoring the oil sector and possibly boosting growth.

Some financial players talked about increased prospects of a Bank of Canada interest rate cut to underpin growth, which might be threatened by Trump's stance on trade. The chances of a cut by mid-2017 faded throughout the session, though, dropping to just one in five.

Energy stocks jumped 2 percent as bets that Trump might revive the Keystone XL pipeline boosted TransCanada Corp and the broader oil sands industry.

"I think this (Trump presidency) could be an overall benefit to the Canadian economy and Canadian stock market," said Philip Petursson, chief investment strategist at Manulife Investments.

Trump has promised to cut taxes and spend on infrastructure, which could be good news for some Canadian companies.

"Start with Keystone and then we can go from there," Petursson said.

The materials sector, which includes gold miners, advanced 1.7 percent, although some gains were pared as the safe-haven rally in gold faded, while the heavyweight financials group rose just under 0.6 percent.   Continued...