CANADA STOCKS-TSX jumps after Liberal election win, infrastructure shares climb

Tue Oct 20, 2015 11:41am EDT
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* TSX up 137.1 points, or 1 percent, to 13,895.48

* Nine of the TSX's 10 main groups rise

By Alastair Sharp

TORONTO, Oct 20 (Reuters) - Investors in Canadian stocks on Tuesday cheered a resounding Liberal election victory that could loosen government purse strings to kickstart growth, as construction firms and railways rose with heavyweight resource and financial stocks.

The Liberals' strong showing removed the uncertainty that could have resulted from a minority government. And while the new government plans to run deficits, it has also said it would keep corporate tax rates steady.

"People are breathing a sigh of relief and they are looking for those areas that should show a positive impact from what the Liberals were talking about," said Irwin Michael, portfolio manager at ABC Funds.

During the campaign, Liberal leader Justin Trudeau pledged to run a C$10 billion ($7.7 billion) annual budget deficit for three years to invest in infrastructure and help stimulate Canada's anemic economic growth.

"New subways and new infrastructure will create employment and will offset some weakness in the commodity portions of the economy," Portfolio Management Corp's Darren Sissons wrote in a note.

Among the stocks to jump were construction companies SNC-Lavalin Group, which added 2.7 percent to C$43.50, and Aecon Group Inc, which gained 3.8 percent to C$15.26.   Continued...