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TSX rises 0.2% to 20,454.32
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Posts its highest closing level since March 6
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Bank of Canada keeps interest rates unchanged
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Materials group rises 0.4%; energy gains 0.2%
(Adds details on activity and investor quote)
By Fergal Smith
April 12 (Reuters) - Canada's main stock index rose on
Wednesday to its highest closing level in five weeks as higher
commodity prices boosted resource shares and the Bank of Canada
kept interest rates unchanged as expected.
The Toronto Stock Exchange's S&P/TSX composite index ended up 32.47 points, or 0.2%, at 20,454.32, its
fourth straight day of gains and its highest closing level since
March 6.
The Bank of Canada left its benchmark interest rate on hold
at 4.50% but struck a hawkish tone, playing down market
expectations for a cut this year as the risk of a recession
diminished.
"Overall, I don't think it changes the market's assessment,"
said Angelo Kourkafas, investment strategist at Edward Jones.
"There's a little bit more question on the Fed (Federal
Reserve). We got U.S. inflation today. There was some early
excitement that the trend of disinflation remains intact but
looking at some of the more core components, they still remain
high."
U.S. consumer prices barely rose in March as the cost of
gasoline declined, but stubbornly high rents kept underlying
inflation pressures simmering, likely ensuring that the Fed will
raise interest rates again next month.
The Toronto market has rallied 5.5% since the start of 2023,
clawing back much of last year's decline.
A combination of positive economic data and declining bond
yields has helped underpin the market, Kourkafas said, adding
"that's really the best regime for valuations."
The energy sector rose 0.2% on Wednesday as the price of oil
extended its recent gains, settling 2.1% higher at $83.26 a
barrel.
The materials group added 0.4% as gold and copper prices
climbed, while industrials advanced 0.6%.
Helping to cap gains for the TSX were declines for the
consumer-related sectors. Consumer discretionary lost 0.6% and
consumer staples ended 0.8% lower.
(Reporting by Fergal Smith; Additional reporting by Shristi
Achar A and Johann M Cherian in Bengaluru; Editing by Shilpi
Majumdar and Alistair Bell)
