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TSX ends up 38.59 points, or 0.2%, at 20,259.78
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National Bank of Canada climbs after earnings beat
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Royal Bank of Canada falls on higher provisions
(Adds details throughout; updates prices to close)
By Johann M Cherian and Fergal Smith
March 1 (Reuters) - Canada's main stock index ended higher on Wednesday,
led by materials and energy stocks after manufacturing data from China eased
some economic slowdown fears, although a decline in the shares of Royal Bank of
Canada on higher loan-loss provisions capped the market's gains.
The Toronto Stock Exchange's S&P/TSX composite index ended up
38.59 points, or 0.2%, at 20,259.78, after a rough February for global equity
markets in which the TSX lost 2.6%.
"The market is reacting positively to strong purchasing manufacturing index
readings out of China," said Brandon Michael, senior analyst at ABC Funds.
"Despite fears of an incoming recession, we're not seeing any of that in the
data, which bodes well for recovery in risk assets."
China's factory sector grew in February at the fastest pace in more than a
decade in a boost for global economy recovery hopes. That's good news for the
TSX which has a 30% weighting in resource shares.
Domestic data was also upbeat, showing that manufacturing activity expanded
at its fastest pace in seven months.
The Toronto market's energy and materials sectors both gained 2.1%, as oil
settled 0.8% higher at $77.69 a barrel, while gold and copper prices also
climbed.
National Bank of Canada shares added 1.6% after the bank reported
first-quarter profits ahead of expectations. In contrast, the shares of Royal
Bank of Canada the country's biggest lender, were down 3.6%.
Shares of Sleep Country were also a drag, falling 7.7% to its
lowest closing level since Jan. 6.
(Reporting by Johann M Cherian in Bengaluru; Editing by Shilpi Majumdar)
