3 Min Read
(Updates throughout with sector details, analyst comments, market reaction)
* TSX up 112.86 points, or 0.8 percent, to 14,190.22
* Eight of the TSX's 10 main groups were up
By Solarina Ho
TORONTO, July 29 (Reuters) - Canada's main stock index rose on Wednesday, after briefly turning negative, as financial and energy stocks helped guide the market higher and markets cheered forecast-beating crude inventory data out of the United States.
The index, which has generally been in decline since highs reached in April, built on Tuesday's gains.
The market could turn after the U.S. Federal Reserve releases its latest monetary policy statement later in the session.
"Possibly in the short term, markets will selloff on that ... But it's great for the long term because it means the U.S. economy is doing better and that's good for everybody and for stocks," said Norman Levine, managing director at Portfolio Management Corporation.
"All that said, we are in the midst of a correction in North America. It's one that's much needed, much anticipated and very welcome."
The most influential movers on the index were financial names, with Royal Bank of Canada rising 1.43 percent to C$74.67, and Toronto-Dominion Bank advancing 1.5 percent to C$51.93.
Manulife Financial Corp and Sun Life Financial Inc were also up, with Manulife climbing 1.69 percent to C$22.88 and Sun Life gaining 2.42 percent to C$42.31.
The overall financial services group was up 1.3 percent.
Levine was particularly positive on Canadian life insurers because of their U.S. exposure: they will benefit from higher U.S. interest rates, and with large U.S. operations, will also benefit from the better economy.
At 11:16 a.m. EDT (1516 GMT), the Toronto Stock Exchange's S&P/TSX composite index rose 112.86 points, or 0.8 percent, to 14,190.22, turning around modest losses earlier in the morning.
Of the index's 10 main groups, eight gained. Advancing issues outnumbered declining ones on the TSX by a 3.65-to-1 ratio on the upside.
Energy stocks rose 1.6 percent on the heels of U.S. crude prices that reversed losses after investors cheered the latest forecast-beating fall in U.S. inventory data. Oil prices have been under immense pressure due to excess global supply.
Suncor Energy shares rose 1.3 percent to C$33.61.
Still, Levine cautioned investors not to pin their hopes on commodity stocks, since overall prices were not going to recover anytime soon.
In individual company news, Bombardier Inc was up 4.4 percent at C$1.90 on a report that said the plane and train maker was in talks with German engineering group Siemens AG around a rail merger. Bombardier denied the report.
Reporting by Solarina Ho; Editing by Andrew Hay