CANADA STOCKS-TSX rises to 16-month high, led by resource shares

Fri Oct 21, 2016 5:13pm EDT
 
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(Adds analyst quotes and details on the Canadian dollar and free trade talks, updates prices)

* TSX closes up 91.12 points, or 0.61 percent, at 14,939.04

* Index posts its highest close since June 2015

* Nine of the TSX's 10 main groups ended higher

By Fergal Smith

TORONTO, Oct 21 (Reuters) - Canada's main stock index rose to a 16-month high on Friday as shares of energy and materials companies led broad-based gains and investors raised bets on a rate cut from the Bank of Canada.

For the week, the commodity-linked TSX rose 2.4 percent, helped by a 15-month high on Wednesday for U.S. crude oil. It was the biggest one-week gain for the index since March.

"People might be speculating that if the loonie goes on another down-leg that could help the Canadian economy again," said Colin Cieszynski, senior market analyst at CMC Markets Canada.

The Canadian dollar tumbled to a seven-month low against the U.S. dollar after weaker-than-expected domestic retail sales and inflation data fueled interest rate cut bets.   Continued...