Canada Stocks: Tech shares help Toronto market extend recent gains

goeasy

29/01/2024 21:26

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      TSX ends up 0.4% at 21,200.06
    

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      Posts its highest close since May 2022
    

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      Tech rallies 1.5%
    

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      Utilities adds 0.7%
    

  
 (Updates at market close)
    By Purvi Agarwal and Fergal Smith
       Jan 29 (Reuters) - Canada's main stock index rose on
Monday to a new 20-month high, helped by gains for the
technology and utilities sectors, as bond yields declined ahead
of a Federal Reserve interest reserve interest rate decision
this week.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 74.78 points, or 0.4%, at 21,200.06, its
highest closing level since May 2022.
    U.S. stocks also advanced as market participants looked
ahead to this week's slew of megacap earnings, economic data and
the Fed's policy announcement on Wednesday.
    "There's been a lot more talk recently that the Fed could
lower rates in March, around the idea that the most recent U.S.
inflation data shows the six-month inflation rate is actually
below 2%," said Allan Small, senior investment advisor of the
Allan Small Financial Group with iA Private Wealth.
    "So the Federal Reserve will consider lowering rates
sometime soon."     
    The technology sector rose 1.5% and utilities was up 0.7%.
The latter includes many high-dividend paying stocks that could
particularly benefit from a drop in borrowing costs.
    Canada's 10-year yield  CA10YT=RR  eased 6.3 basis points to
3.459%.
    Consumer discretionary was another standout, adding 0.9%.
    Energy fell nearly 1%, with the price of oil settling 1.6%
lower at $76.78 a barrel as China's ailing property sector
sparked demand worries.

 (Reporting by Fergal Smith in Toronto and Khushi Singh and
Purvi Agarwal in Bengaluru; Editing by Vijay Kishore and
Marguerita Choy)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))