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CANADA STOCKS-TSX posts 200 point gain as financials rally

Published 2017-03-01, 05:20 p/m
© Reuters.  CANADA STOCKS-TSX posts 200 point gain as financials rally
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(Adds portfolio manager quote and details on Brookfield and on background and updates prices)

* TSX ends up 200.44 points, or 1.3 percent, at 15,599.68

* Nine of the TSX's 10 main groups end higher

By Fergal Smith

TORONTO, March 1 (Reuters) - Canada's benchmark stock index on Wednesday scored its biggest points gain in 10 months as its financial services group cheered prospects for a March interest rate hike by the Federal Reserve.

Resource stocks, industrials and consumer names were all also broadly higher as the index broke a five-day downward move.

"The TSX is taking its cues from the rally in the U.S.; a bit of optimism after Trump's speech," said Youssef Zohny, portfolio manager at StennerZohny Investment Partners of Richardson GMP.

The Dow crossed the 21,000 mark for the first time after U.S. President Donald Trump's measured tone in his first speech to Congress, while investors viewed a looming interest rate increase as a glass half full after Fed policymakers on Tuesday jolted markets into higher expectations for a hike this month. financial stocks stand to benefit from any hikes as higher bond yields reduce the value of insurance companies' liabilities and increase net interest margins of banks.

The group gained 1.5 percent overall, with Toronto-Dominion Bank TD.TO advancing 1.5 percent to C$69.50 ahead of its quarterly results on Thursday.

National Bank of Canada NA.TO gained 1.7 percent to C$57.66 after reporting profit that handily beat estimates. Asset Management Inc BAMa.TO is nearing a deal to buy a 30 percent stake in Renova Energia SA RNEW11.SA , a person directly involved in the transaction said. of Brookfield rose 1.3 percent to C$48.47.

By contrast to the Fed, the Bank of Canada held rates steady as it stayed focused on the "significant uncertainties" facing the domestic economy. Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 200.44 points, or 1.3 percent, at 15,599.68, which was its biggest points gain since May and its biggest percentage advanced since July.

Nine of the index's 10 main groups were in positive territory, with only telecoms lagging.

The energy group climbed nearly 1.5 percent even as a record high for U.S. crude stocks weighed on oil prices. O/R

U.S. crude oil futures CLc1 settled 18 cents lower at $53.83 a barrel.

Industrials rose nearly 2 percent as railroad stocks climbed, while the materials group, which includes precious and base metals miners and fertilizer companies, added 2.3 percent.

First Quantum Minerals Ltd FM.TO jumped 8.2 percent to C$14.95 and Teck Resources Ltd TECKb.TO advanced 5.8 percent to C$28.08 as copper prices rose to their highest in more than a week. MET/L

Copper CMCU3 firmed 0.7 percent to $6,016.15 a tonne as manufacturing data from top consumer China showed potential for strong demand.

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