Canada Stocks: TSX rises after strong earnings boost consumer stocks

North West

13/09/2023 16:37

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      North West Company leads gains
    

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      Dollarama lifts consumer discretionary index
    

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      U.S. CPI hotter than expected
    

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      TSX up 0.2%. 
    

  
    By Khushi Singh
       Sept 13 (Reuters) - Canada's main stock index rose for a
third straight session on Wednesday, led by gains in consumer
discretionary shares, while the U.S. consumer prices data for
August cemented bets on a rate pause by the U.S. Federal Reserve
in its September meeting. 
    At 10:49 a.m. ET (1449 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 43.15 points, or 0.21%,
at 20,266.23.
    Consumer discretionary shares  .GSPTTCD  added 1.1%, driven
by Dollarama's  DOL.TO  upbeat results. The discount retailer
raised annual sales forecast after topping quarterly sales
estimates, pushing its stock 3.9% higher.
     Food and general products retailer, North West Company
 NWC.TO  rose 14.7% after strong Q2 results, helping the
consumer staples index  .GSPTTCS  gain 0.7%. 
    The healthcare sector  .GSPTTHC  lost 0.2% after a continued
selloff in Tilray brands  TLRY.TO  for a second consecutive day.
The global cannabis-lifestyle company was down 1.0%.
    The materials sector  .GSPTTMT , which includes precious and
base metal miners and fertilizer companies, lost 0.2% as copper
prices declined after data showed an acceleration in U.S.
consumer prices, even as gold remained steady.  GOL/   MET/L 
    Stateside, data showed that U.S. consumer prices increased
the most in 14 months in August as fuel prices surged, but the
annual rise in underlying inflation was the smallest in nearly
two years, raising hopes that the Fed could keep interest rates
unchanged next week.
    "It's tempting to read too much into the month-on-month data
in this hyper data-dependent central bank age but on balance
this doesn't move the needle too much," said John Leiper, chief
investment officer at Titan Asset Management.
    The Canadian dollar  CAD=  strengthened against the
greenback on Wednesday, while the yield on the 10-year Canadian
benchmark bond  CA10YT=RR  climbed after the U.S. CPI data.

 (Reporting by Khushi Singh in Bengaluru, Editing by Tasim
Zahid)
 ((Khushi.Singh@thomsonreuters.com;))