June 30, 2020 / 8:52 PM / a month ago

WRAPUP 1-Canadian stocks post best quarter since 2009 as investors see past GDP slump

    * The TSX closes up 0.8% on the day, nearly 16% for the
    * Canadian GDP falls by a record 11.6% in April
    * The Canadian dollar rises 0.6% against the greenback
    * Canadian bond yields rise across a steeper curve

    By Fergal Smith
    TORONTO, June 30 (Reuters) - Canada's main stock market
index on Tuesday capped off its best quarter since the global
financial crisis with additional gains, as investors focused on
the speed of economic recovery from the coronavirus crisis
rather than data showing a record decline for monthly GDP. 
    The Toronto Stock Exchange's S&P/TSX composite index
          closed up 0.8% at 15,515.22. Since the end of March,
the TSX has climbed nearly 16% to notch its biggest quarterly
advance since the second quarter of 2009. It plunged 21.6% in
the prior three months.
    "It has been a remarkable quarter," said Mike Archibald, a
portfolio manager at AGF Investments. "I would expect that on
the back half of the year, as economic conditions improve, stock
markets continue to move a little bit higher."
    "There still continues to be a mountain of cash on the
sidelines, waiting for the market to pull back to get in,"
Archibald said. 
    Canada's real GDP is likely to grow 3% in May, bouncing back
from a record decline of 11.6% in April, Statistics Canada said
in a flash estimate, as businesses across the country began to
reopen following coronavirus-linked shutdowns.                 
    The economically-sensitive and heavily-weighted financial
services sector gained 0.8%, while gold stocks climbed 2.1%
along with higher gold prices       . For the second quarter,
the gold index was up 46.7%.
    Shares of Cineplex          fell nearly 19% on Tuesday to a
three-and-a-half-month low after reporting a hit to
first-quarter results from the COVID-19 pandemic, while the
price of oil       , one of Canada's major exports, settled 1.1%
lower at $39.27 a barrel as investors worried that rising
COVID-19 cases would hurt demand.             
    Still, oil has rallied more than 90% since the end of March.
That has been supportive of the Canadian dollar.
    The loonie        was trading 0.6% higher at 1.3577 to the
greenback, or 73.65 U.S. cents on Tuesday, having touched its
strongest intraday level since June 24 at 1.3566. For the
quarter, it was up 3.6%, its biggest gain since the third
quarter of 2017.
    Canadian government bond yields rose across a steeper curve,
with the 10-year yield             up 2.2 basis points at
0.532%. Canada's bond market, as well as the TSX, will be closed
on Wednesday for the Canada Day holiday.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky and Sonya
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