CANADA STOCKS-TSX gains muted by energy stocks; banks, miners shine

Mon Aug 29, 2016 5:06pm EDT
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(Adds strategist comment, updates prices to close)

* TSX ends up 42.13 points, or 0.29 percent, at 14,682.01

* Half of TSX's 10 main groups gain, half fall

By Alastair Sharp

TORONTO, Aug 29 (Reuters) - Canada's main stock index rose on Monday, but by less than its U.S. peers, as investors bet on rate hikes sooner south of the border and lower oil prices weighed on the commodity-rich TSX.

Financial stocks were among the most influential gainers on the Toronto Stock Exchange's S&P/TSX composite index as investors took signals from U.S. Federal Reserve policymakers including Chair Janet Yellen as evidence of economic resilience in Canada's main trading partner.

The Canadian index closed up 42.13 points, or 0.29 percent, at 14,682.01, while two of the three main U.S. indexes gained more than half a percent. The U.S. dollar and Treasury yields also rose

With the Canadian central bank more likely to cut or hold as the Fed preps for a hike, high-yielding Canadian stocks may stay in vogue, said Craig Fehr, Canadian market strategist at Edward Jones in St. Louis, Missouri.

"To the extent that rates remain low for longer domestically, that could make those higher-yielding sectors attractive to investors for perhaps longer than will be the case in the States," he said, highlighting utilities and to lesser degree telecom companies.   Continued...