Toronto stocks rebound to higher close
TORONTO (Reuters) - The Toronto Stock Exchange's main index overcame early losses to end higher on Monday, boosted by resource shares and expectations of another U.S. interest rate cut later in the week.
After falling more than 100 points in the morning, strong resource shares helped prop the index up, with the materials sector gaining 2.1 percent and the gold-producers subsector up 1.7 percent.
Barrick Gold (ABX.TO: Quote) rose C$1.28, or 2.4 percent, to C$53.77, and Yamana Gold (YRI.TO: Quote) was up 76 Canadian cents, or 4.9 percent, at C$16.46, while the price of bullion touched a record high.
Also in the resource group, Potash Corp of Saskatchewan (POT.TO: Quote) climbed C$6.22, or 4.6 percent, to C$140.20.
The financials sector, the biggest on the index, also contributed to the rally, adding 0.9 percent, as investors were optimistic of another interest rate cut from the U.S. Federal Reserve on Wednesday.
The S&P/TSX composite index .GSPTSE closed up 92.08 points, or 0.71 percent, at 12,986.91, pulled higher in a late-day rally. Six of the TSX's 10 main sectors ended in positive territory.
Last week, an emergency rate cuts by the Fed, plus a smaller cut by the Bank of Canada in its scheduled rate announcement, helped pull the Toronto index out of a massive five-day slump.
"The market is fixated on yet another interest rate reduction, so investors are hoping that there will be positive implications for the banks," said John Ing, president of Maison Placements Canada.