September 19, 2017 / 11:41 AM / in 2 months

TSX hits six-week high in broad rally ahead of Fed

TORONTO (Reuters) - Canada’s main stock index rose to six-week highs on Tuesday, buoyed by a broad rally led by financial and energy stocks, as investors cautiously awaited for clues from the U.S. Federal Reserve on its next move.

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch

The financial sector, which accounts for about a third of the index’s weight, climbed 0.5 percent. Individual gains within the group were modest, with Royal Bank of Canada (RY.TO) adding 0.9 percent to finish at C$92.98.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rose 56.3 points, or 0.37 percent, to 15,292.97. It touched as high as 15,315.27 during the session, a level not reached since Aug. 3.

Of the index’s 10 main groups, utilities were the lone decliners, losing 0.1 percent.

“It’s a broad sector rally ... You’ve seen the TSX bounce back from the lows,” said Manash Goswami, senior vice president, portfolio manager at First Asset ETFs. “Heading into tomorrow’s Fed decision, we weren’t doing too much. We’re waiting to see what they’re going to say.”

Goswami is not expecting an interest rate increase, but said investors are keen for further guidance from the U.S. central bank on its plans to wind down its huge balance sheet and what the implications may be for the markets.

The energy group climbed 0.1 percent as crude prices CLc1 LCOc1 pulled back from near-five-month highs in advance of U.S. data that is expected to show a build in crude inventories. [O/R]

Inter Pipeline Ltd (IPL.TO) rose 3.3 percent to C$23.81, while Cenovus Energy Inc (CVE.TO) advanced 2.1 percent to C$11.48.

The materials group, which includes precious and base metals miners and fertilizer companies, added 0.4 percent.

Telecoms rose 0.9 percent with Rogers Communications Inc RCIb.TO up 1.5 percent to end at C$64.60.

Advancing issues outnumbered declining ones on the TSX by 148 to 97, for a 1.53-to-1 ratio on the upside.

Reporting by Solarina Ho in Toronto; Editing by James Dalgleish

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