Canada Stocks: TSX ends higher as oil rallies, Gildan Activewear jumps

Gildan Activewear

19/03/2024 20:39

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      TSX ends up 0.1% at 21,860.58
    

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      Energy adds 0.5%; oil settles 0.9% higher
    

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      Gildan Activewear shares jump 10.8%
    

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      Canada's annual inflation rate cools to 2.8%
    

  
 (Updates at market close)
    By Fergal Smith
       March 19 (Reuters) - Canada's main stock index rose on
Tuesday, helped by higher oil prices and a sharp increase in the
shares of Gildan Activewear, but the index's gains were kept in
check by uncertainty ahead of an interest rate decision by the
U.S. Federal Reserve.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 23.4 points, or 0.1%, at 21,860.58, moving
closer to a near two-year high it notched last Wednesday at
21,970.11.
    "Energy is strong. Oil prices are grinding higher above 80
dollars and we're heading toward the summer driving season in
the United States," said Brian
Madden​​​​, chief investment officer at First Avenue Investment
Counsel Inc.
    The energy sector added 0.5% as the price of oil  CLc1 
settled 0.9% higher at $83.47 a barrel, with traders assessing
how Ukraine's recent attacks on Russian refineries would affect
global petroleum supplies.
    The consumer discretionary sector climbed 1.6%, led by a
gain of 10.8% for the shares of Gildan Activewear  GIL.TO  after
the company said its board has decided to put the clothing maker
up for sale following a review by a special committee.
    High-dividend paying sectors, such as consumer staples and
real estate, also notched gains as a surprise cooling in
Canadian inflation to an annual rate of 2.8% in February
bolstered expectations the Bank of Canada would begin cutting
interest rates in the coming months.
    "A caveat to the strength that we're seeing, it's in very
light trading volume," Madden said. "Everybody is sitting on
pins and needles waiting for the Federal Reserve meeting
tomorrow."
    The Fed's two-day policy meeting is due to conclude on
Wednesday. Investors are concerned that the U.S. central bank
may reveal new economic projections that signal fewer interest
rate cuts and a later start to the policy easing cycle.

 (Reporting by Fergal Smith in Toronto and Shubham Batra in
Bengaluru; Editing by Vijay Kishore and Sandra Maler)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))