* TSX down 25.1 points, or 0.17 percent, at 15,065.05
* Seven of the TSX’s 10 main groups were higher
TORONTO, Sept 6 (Reuters) - Canada’s main stock index turned negative on Wednesday after the Bank of Canada surprised many with an interest rate increase, with the move cutting into earlier gains for energy stocks as oil prices rose.
Interest-rate sensitive sectors including telecoms and utilities, which typically issue debt to pay for projects and pay out dividends made less attractive by higher government bond yields, fell after the central bank said surprising strong economic growth supported its second rate hike since July.
At 10:22 a.m. ET (1422 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 25.1 points, or 0.17 percent, at 15,065.05, with seven of its 10 main sectors in negative territory. It had been trading higher before the Bank of Canada’s 10 a.m. announcement.
The most influential gainers on the index included Alimentation Couche Tard, which jumped 2.2 percent to C$60.76 after the convenience store operator reported better-than-expected quarterly earnings.
The energy group was last up 0.7 percent, trimming sharper gains before the rate hike announcement, with Canadian Natural Resources Ltd up 1.4 percent to C$39.83 and Encana Corp also up 1.4 percent to C$11.69.
The reopening of U.S. Gulf Coast refineries helped provide a more bullish outlook for oil after sharp price drops due to Hurricane Harvey, but a second hurricane, Irma, was approaching the United States.
Pipeline company Enbridge Inc added 0.4 percent to C$49.96 and rival TransCanada Corp rose 0.6 percent to C$62.76.
TransCanada said it would extend open season for its Keystone system due to flooding in Houston and parts of the U.S. Gulf Coast caused by Harvey.
Shares in Hudson’s Bay Co fell sharply at the open before paring those losses to last trade down 1.2 percent at C$11.13 . The department store operator reported a bigger-than-forecast quarterly loss after the bell on Tuesday.
The financials group gained 0.3 percent, while telecoms were down 0.3 percent and utilities traded slightly lower.
The materials group, which includes precious and base metals miners and fertilizer companies, fell 0.7 percent. (Reporting by Alastair Sharp; Editing by Meredith Mazzilli)
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