TORONTO (Reuters) - Canada’s main stock index rose on Monday, led by consumer and railway stocks as investor attention returned to corporate earnings after a failed military coup in Turkey late last week.
The index has gained ground in six of the last seven sessions. It reached an 11-month high on Thursday at 14,558.12 before the rally paused on Friday.
“We are in a wait and see time frame for earnings,” said Greg Eckel, senior vice president at Morgan Meighen & Associates.
Investors that are worried about valuations having gotten “out of hand” are waiting for forward guidance from corporations, Eckel added.
Restaurant Brands International Inc (QSR.TO), which owns Tim Hortons and Burger King, rose 4.1 percent to C$56.18 and Magna International Inc (MG.TO) climbed 1.8 percent to C$49.33. The overall consumer discretionary group advanced 1.3 percent.
Valeant Pharmaceutical International Inc VRX.TO climbed 2.8 percent to C$30.40 after a company it has a licensing agreement with reported positive results for a new drug.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 49.98 points, or 0.35 percent, at 14,532.40. Nine of the index’s 10 main groups ended higher.
Some broadening in the market’s rally is welcome after a sharp rally since January that has been led by energy and gold stocks, said Eckel.
Spot gold XAU= fell 0.6 percent, pressured by the revival in risk appetite after the failed coup in Turkey. Still, the materials group, which includes precious and base metals miners and fertilizer companies, added 0.7 percent.
Energy stocks also edged higher, up 0.4 percent, despite a drop in crude oil prices. U.S. crude oil futures CLc1 settled 71 cents lower at $45.24 a barrel.
Financial sector stocks firmed 0.1 percent, while telecommunications was the lone group that fell, finishing 0.2 percent lower.
Pharmacy chain Jean Coutu PJCa.TO declined 3.7 percent to C$19.05 after a class action lawsuit was filed against it by pharmacist-owners.
Additional reporting by Alastair Sharp; Editing by W Simon and Diane Craft