Canada Stocks: TSX ends higher as materials sector gains ground

Onex

26/06/2024 21:45

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      TSX ends up 5.42 points at 21,793.90
    

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      Materials group climbs to 2-week high
    

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      Real estate falls 1.3%
    

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      Onex Corp ends 2.2% lower
    

  
 (Updates at market close)
    By Fergal Smith
       June 26 (Reuters) - Canada's main stock index ended
slightly higher on Wednesday as gains for the materials sector
and industrials offset declines for interest rate sensitive
shares, ahead of key U.S. inflation data at the end of the week.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 5.42 points at 21,793.90, with investors
awaiting the release on Friday of the U.S. personal consumption
expenditures price index, the Federal Reserve's preferred
inflation gauge.    
    "Every thing is on hold until Friday," said Allan Small,
senior investment advisor of the Allan Small Financial Group
with iA Private Wealth. "PCE coming out on the last day (of the
month) is going to definitely move markets."
    Canada's 10-year yield  CA10YT=RR  touched its highest level
since June 11 at 3.482% after data on Tuesday showed a surprise
acceleration in Canadian inflation.
    The data has reduced the chances of the Bank of Canada
cutting interest rates further in July, Small said.
    Earlier this month, the BoC became the first G7 central bank
to ease policy, cutting its benchmark rate by 25 basis points to
4.75%.
    The materials group, which includes metal miners and
fertilizer companies, rose 1.3%, to notch its highest closing
level since June 10.
    First Quantum Minerals Ltd  FM.TO  shares were up 7.4% after
Deutsche Bank raised its target price on the stock.
    Industrials also posted gains, rising 0.6%.    
    Financials, which account for 29% of the Toronto market's
weighting, fell 0.4%, with Onex Corp  ONEX.TO  down 2.2%.
    WestJet Airlines, which is part of Onex's portfolio of
assets, said a union representing its maintenance engineers had
rejected its new pay offer and served a second strike notice.
    Real estate lost 1.3% and utilities ended 0.7% lower.

 (Reporting by Fergal Smith in Toronto and Nikhil Sharma in
Bengaluru; Editing by Vijay Kishore and Deepa Babington)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))