TORONTO (Reuters) - Canada’s main stock index gained on Wednesday as rising gold miners and energy companies offset declines in most other sectors, including the hefty financials groups.
The price of bullion XAU= hit its highest since late June and the U.S. dollar .DXY sank as more signs of slowing growth in the United States and China raised doubts the Federal Reserve will raise U.S. interest rates later this year.
The materials group jumped 3.9 percent and energy stocks rose 1.2 percent, despite oil prices CLc1 LCOc1 settling down slightly.
“You’re looking at a commodity-based rally which is primarily on U.S. dollar weakness,” said Sid Mokhtari, a market technician and director of institutional equity research at CIBC World Markets.
“It’s reasonable to assume pressure on the U.S. dollar can persist until we get a better message out of the U.S. Fed on their intentions for policy.”
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 30.60 points, or 0.22 percent, at 13,875.33.
But seven of its 10 main sectors fell, with five declining stocks for every four advancers.
Mokhtari said that energy could rise further which, coupled with stability in bank and consumer-related stocks, could push the index up to between 14,300 and 14,500 in coming months.
The materials and energy groups were joined by healthcare stocks, led by a 5.6 percent gain for heavyweight Valeant Pharmaceuticals International Inc (VRX.TO), to C$229.08.
Reporting by Alastair Sharp; Editing by Meredith Mazzilli and James Dalgleish