January 17, 2018 / 12:29 PM / 8 months ago

TSX ends up as banks lead rally after rate hike

TORONTO (Reuters) - Canada’s main stock index ended higher on Wednesday, with financial stocks leading a broad but shallow rally as the Bank of Canada hiked rates, offsetting losses among gold miners as the price of the precious metal slipped.

FILE PHOTO - A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, Ontario, Canada on June 23, 2014. REUTERS/Mark Blinch/File Photo

- The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 27.82 points, or 0.17 percent, at 16,326.70. Eight of its 10 main sectors gained.

- The financials group, which accounts for more than a third of the index’s weight, gained 0.4 percent. Royal Bank of Canada (RY.TO) added 0.5 percent to C$106.28, Bank of Montreal (BMO.TO) gained 0.7 percent to C$103.32, and Canadian Imperial Bank of Commerce (CM.TO) finished up 0.5 percent to C$123.02 as they and other lenders moved their own benchmark lending rates up.

- The country’s central bank raised interest rates as expected, as job growth and firmer inflation outweighed the cloud of NAFTA uncertainty, but its governor admitted the decision was not a no-brainer.

- The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.9 percent.

- Barrick Gold Corp (ABX.TO) shed 3.8 percent to C$18.17 and smaller New Gold (NGD.TO) lost 6.6 percent to C$3.97 as gold prices slipped from a recent four-month high.

- Goldcorp Inc (G.TO) fell 4.4 percent to C$18.29. The miner’s chief executive officer said they are “done” with mergers and acquisitions and will focus on building new mines at projects it already owns and on improving existing operations.

- Canopy Growth Corp (WEED.TO) gained 3 percent to $37.61 after saying on Tuesday it had signed an agreement to supply cannabis to the Canadian province of Prince Edward Island and to collaborate on medical cannabis research in Australia. 

Reporting by Alastair Sharp; Editing by Jonathan Oatis and Phil Berlowitz

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