CANADA STOCKS-TSX up as Fed hike talk boosts banks; energy stocks fall

Tue Feb 7, 2017 4:26pm EST
 
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(Adds trader comment, updates prices to close)

* TSX ends up 41.86 points, or 0.27 percent, at 15,498.80

* Nine of TSX's 10 main groups move higher

* Energy group down 0.9 percent

By Alastair Sharp

TORONTO, Feb 7 (Reuters) - Canada's main stock index rose on Tuesday, with gains among heavyweight financial stocks on talk of a U.S. interest rate hike in March offsetting losses for shares of energy companies as oil prices weighed.

The Toronto Stock Exchange's S&P/TSX composite index settled up 41.86 points, or 0.27 percent, at 15,498.80. Nine of its 10 groups rose, although advancers only outnumbered decliners by a 1.2-to-1 ratio overall.

"We've got a broad-based rally but it doesn't have a huge velocity to it," said Peggy Bowie, a senior trader at Manulife Asset Management. "Volumes are light and the market is quiet."

She said Canadian financial stocks likely have more room to run as the prospect of higher interest rates from the U.S. Federal Reserve push bond yields up and support earnings growth.   Continued...