(Updates to close)
By Maiya Keidan
TORONTO, March 14 (Reuters) - Canada's main stock index
rose 0.5% on Tuesday, as gains in technology and materials
helped to reverse some of Monday's losses from the collapse of
Silicon Valley Bank (SVB) and Signature Bank.
The Toronto Stock Exchange's main composite index closed up 105.26 points at 19,694.16 after ending Monday down
0.9% at 19,588.90.
"I think it went too far on Monday and we've seen a partial
reversal today and I think the market is trying to gauge how
long-lasting this episode is, and how far reaching," said Doug
Porter, chief economist at BMO Capital Markets.
"The market is still grappling with the turmoil we've seen
in the financial sector and the need to still dampen down
inflation through higher interest rates. The market is still a
little bit unsettled."
Canada's technology sector rose 2.6% while the
materials group, which includes precious and base metals miners
and fertilizer companies, rose 0.9%.
Heavyweight financials , the Canadian index's
biggest sector, closed 0.8% higher in a partial rebound from
Monday's 2% decline.
Canada's financial regulator said on Tuesday it was boosting
the frequency and intensity of monitoring of institutional
liquidity after SVB's collapse.
Economists are divided on whether the Fed will hike interest
rates again next week after the failure of SVB and Signature
Bank. The European Central Bank is also expected to announce an
important rate decision on Thursday.
Energy stocks fell 1.2% after oil prices dropped
to a nine-week low on fresh concerns of reduced future oil
demand.
Brent futures fell 3.9% to $77.55 a barrel, while
U.S. West Texas Intermediate (WTI) crude fell 4.3% to
$71.53.
Energy stocks started Tuesday's session with gains of 1.3%,
after a 4.6% drop on Monday.
(Reporting by Maiya Keidan; Editing by Richard Chang)
Messaging: maiya.keidan.thomsonreuters.com@reuters.net))
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