* TSX adds 83.54 points, or 0.61 percent, to 13,841.92
* Eight of the TSX's 10 main groups rise
By Alastair Sharp
TORONTO, Oct 20 (Reuters) - Investors in Canadian stocks on
Tuesday cheered a resounding Liberal election victory that could
loosen government purse strings to kickstart growth, as
construction firms and railways rose with heavyweight resource
and financial stocks.
The Liberals' strong showing banished worries about a
potential minority government. And while the new government
plans to run deficits, it has also said it would keep corporate
tax rates steady. urn:newsml:reuters.com:*:nL1N12G1ER
"People are breathing a sigh of relief and they are looking
for those areas that should show a positive impact from what the
Liberals were talking about," said Irwin Michael, portfolio
manager at ABC Funds.
During the campaign, Liberal leader Justin Trudeau pledged
to run a C$10 billion ($7.7 billion) annual budget deficit for
three years to invest in infrastructure and help stimulate
Canada's economy.
If the plan works "the industrial space could benefit, the
consumer space will continue to benefit in my opinion," said
Craig Fehr, Canadian market strategist at Edward Jones in St.
Louis, Missouri.
The industrial group gained 2.6 percent, consumer
discretionary names added 1.9 percent, and consumer staples rose
1.1 percent.
Among the stocks to jump were construction companies
SNC-Lavalin Group SNC.TO , which added 1.4 percent to C$42.95,
and Aecon Group Inc ARE.TO , which gained 5 percent to C$15.43.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 83.54 points, or 0.61 percent, at 13,841.92.
Eight of the index's 10 main groups rose, with financials up
1.9 percent and energy stocks jumping 2.6 percent even as the
price of oil slipped slightly. O/R
The two main railways also rose, with Canadian Pacific
Railway CP.TO CP.N up 3.4 percent to C$196.72 after
reporting profit that beat expectations on higher freight rates
and lower operating costs. urn:newsml:reuters.com:*:nL3N12K4A0
Its rival, Canadian National Railway CNR.TO , added 1.9
percent to C$78.59.
Healthcare stocks pulled back, weighed down by a 10.4
percent drop in Valeant Pharmaceuticals International Inc (N:VRX)
VRX.TO to C$190.85. urn:newsml:reuters.com:*:nL3N12K4YI
Progressive Waste Solutions BIN.TO was the second-biggest
weight, plunging 14.6 percent to C$30.12 after the waste
management company cut its earnings forecast. urn:newsml:reuters.com:*:nL3N12K4IY
Outside the main index, Canada's nascent medical marijuana
sector was higher. Trudeau has talked about legalizing and
shares of some of the better-recognized companies surged after
the Liberal sweep. urn:newsml:reuters.com:*:nL1N12K172
($1 = 1.2941 Canadian dollars)
(Editing by Chris Reese and Matthew Lewis)