Canada Stocks: TSX rises for fifth day on interest rate optimism

Metro

15/11/2023 21:26

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      TSX ends up 0.2% at 20,057.89
    

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      Technology rallies 2.1%
    

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      Utilities sector gains 1.2%
    

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      Metro falls 6.8% after reporting earnings
    

  
 (Updates at market close)
    By Fergal Smith
       Nov 15 (Reuters) - Canada's main stock index extended
its winning streak on Wednesday as optimism that interest rates
have peaked boosted technology shares, while food retailers lost
ground after reporting quarterly results.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 34.16 points, or 0.2%, at 20,057.89, its
fifth straight day of gains and its highest closing level since
Sept. 20.
    Investors remained optimistic that borrowing costs could
ease from current levels after data on Tuesday showed U.S.
inflation cooling more than expected.    
    "My sense is that (bond) yields are going to continue to
move lower," said Mike Archibald, a portfolio manager at AGF
Investments. "That's going to be good for risk and I think it is
going to be constructive for technology."
    Lower yields increase the attractiveness to investors of the
future cash flows that technology and other high growth
companies are expected to produce.
    The Toronto market's technology sector added 2.1%, while
utilities rose 1.2% and heavily-weighted financials ended 0.4%
higher.
    Energy was a drag, falling 1.2%, as oil settled down 2% at
$76.66 a barrel. Oil was pressured by a bigger-than-expected
rise in U.S. crude inventories and record U.S. crude production.
    Consumer staples was another weak spot, falling 2.6%, as
investors weighed the results of major food retailers. Metro Inc
 MRU.TO  shares fell 6.8% and shares of Loblaw Companies Ltd
 L.TO  gave back their earlier gains to end 2.2% lower.

 (Reporting by Fergal Smith in Toronto and Johann M Cherian in
Bengaluru; Editing by Tasim Zahid and Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))