CANADA STOCKS-TSX rebounds from 2017 low after Fed decision as commodities rally

Wed Mar 15, 2017 5:09pm EDT
 
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(Adds portfolio manager quotes, details on Fed decision and Manulife, updates prices)

* TSX closes up 141.3 points, or 0.92 percent, at 15,520.91

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

By Fergal Smith

TORONTO, March 15 (Reuters) - Canada's main stock index rebounded on Wednesday from a 2017 low hit in the previous session, led by gains for natural resource shares as commodity prices rallied, while investors took the latest Federal Reserve interest rate hike in stride.

The Fed raised rates for the second time in three months, while officials at the U.S. central bank stuck to their outlook for two more rate hikes this year and three in 2018.

"If they raise rates because the economy is moving ahead and inflation is relatively benign ... then I think the market will readily accept it," said Ian Nakamoto, equity specialist at MacDougall, MacDougall & MacTier, a division of Raymond James.

"The last thing we need is for them to be behind the curve, because we always get rates much higher than expected and then you come down with a thud, the economy and the stock market."

The Toronto Stock Exchange's S&P/TSX composite index closed up 141.30 points, or 0.92 percent, at 15,520.91. The index had its lowest close of the year on Tuesday.   Continued...