August 20, 2014 / 11:29 AM / 5 years ago

TSX hits record high after Fed comment

TORONTO (Reuters) - Canada’s main stock index touched a record high on Wednesday after commentary from the Federal Reserve suggested that the U.S. central bank’s monetary policy will remain market-friendly for now.

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch

Minutes from a recent policy meeting indicated that the Fed will not raise interest rates until it has more confidence in the strength of the economic recovery.

Investors will be looking for further clues about the central bank’s outlook for interest rates when Fed Chair Janet Yellen addresses policymakers in Jackson Hole, Wyoming later this week.

The Toronto equity market has gained in each of the last five sessions and is up more than 14 percent this year. It is one of the strongest performers among its global peers.

“Things are coming together for the TSX. All the cards are playing out in its favor,” said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

“The easy money certainly has been made, but the conditions are still conducive for further gains.”

The Toronto Stock Exchange’s S&P/TSX composite index closed up 84.78 points, or 0.55 percent, at 15,561.95. Nine of the 10 main sectors on the index were higher.

The industrial sector advanced 1.1 percent, with Canadian Pacific Railway Ltd rising 1.7 percent to C$219.84 and Canadian National Railway Co adding 1.6 percent to C$76.24.

Shares of energy producers climbed with the oil price. Suncor Energy Inc gained 1 percent to C$43.66, and Canadian Natural Resources Ltd rose 0.6 percent to C$46.16.

Financials, the index’s most heavily weighted sector, climbed 0.4 percent, with Toronto Dominion Bank up 0.6 percent, at C$57.55.

Editing by Meredith Mazzilli

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