CANADA-STOCKS-TSX rises to 3-week closing high as bank shares climb

Thu Nov 17, 2016 5:16pm EST
 
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(Adds portfolio manager quotes, details on Agnico Eagle, updates prices)

* TSX ends up 92.87 points, or 0.63 percent, at 14,826.09

* Index posts its highest close since Oct. 27

* Eight of the TSX's 10 main groups end higher

By Fergal Smith

TORONTO, Nov 17 (Reuters) - Canada's main stock index rose on Thursday to its highest close in three weeks as Canadian banks tracked gains for their U.S. counterparts on expectations that the Federal Reserve will raise interest rates in December.

Bond yields resumed their march higher since last week's U.S. election as Fed Chair Janet Yellen said in congressional testimony that the election of Donald Trump as president has done nothing to change the Federal Reserve's plans for a rate increase "relatively soon."

Shares of banks have benefited from the move higher in bond yields, which improves their net interest margins.

"We're being led higher by the banks, very strong moves by the Canadian banks that are following their U.S. brothers up higher," said Barry Schwartz, portfolio manager at Baskin Financial Services.   Continued...