Canada Stocks: TSX gains as bank acquisition, U.S. CPI data lift sentiment

Dollarama

12/06/2024 21:36

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      TSX ends up 0.3% at 21,961.55
    

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      National Bank agrees to buy Canadian Western Bank
    

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      Financials add 0.5%, real estate ends 1% higher
    

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      Technology advances 1.4%
    

  
 (Updated at market close)
    By Fergal Smith
       June 12 (Reuters) - Canada's main stock index ended
higher on Wednesday as a drop in long-term borrowing costs,
following the release of U.S. inflation data, and an acquisition
by National Bank of Canada bolstered investor sentiment.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 74.21 points, or 0.3%, at 21,961.55,
extending the seesaw pattern of recent days.
    "Getting some M&A in there, having lower yields, it just
feels like it's a little bit more risk-on here," said Greg
Taylor, portfolio manager at Purpose Investments. "Banks are up,
commodities are doing better with a lower U.S. dollar."
    The U.S. currency and bond yields fell after U.S. consumer
prices rose less-than-expected in May, raising hopes for a rate
cut from the Federal Reserve in the coming months, with the
central bank keeping interest rates at current levels in its
latest policy statement.
    The Bank of Canada has already begun cutting interest rates.
    Canadian utility and real estate stocks are likely to be
among the biggest beneficiaries of the BoC's easing cycle, while
the prospect of increased loan demand could help bank shares,
investors say.    
    Financials  .SPTTFS  added 0.5% after National Bank  NA.TO 
agreed to a C$5 billion ($3.65 billion) deal to buy Alberta's
Canadian Western Bank  CWB . Shares of National Bank were down
5.9%, while Canadian Western Bank jumped 68.3%.
    Real estate  .GSPTTRE  was up 1% and technology ended 1.4%
higher.
    The price of oil  CLc1  settled 0.8% higher at $78.50 a
barrel. Still, energy  SPTTEN  lost 0.7%.
    Consumer discretionary  .GSPTTCD  also ended lower, falling
0.5%, with Dollarama  DOL.TO  shares down 4.1% as the discount
store posted lower first-quarter comparable store sales. 

 (Reporting by Fergal Smith in Toronto and Nikhil Sharma and
Shristi Achar A; Editing by Shreya Biswas and Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))