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CANADA STOCKS-TSX rises as banks, miners lift, but energy slump caps gains

Published 2017-07-05, 05:37 p/m
CANADA STOCKS-TSX rises as banks, miners lift, but energy slump caps gains
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* TSX up 22.51 points, or 0.15 percent, to 15,153.12

* Six of the TSX's 10 main groups were up

By Solarina Ho

TORONTO, July 5 (Reuters) - Canada's main stock index rebounded from earlier session losses on Wednesday but gains in heavily weighted sectors, including financials and materials, were tempered by a sharp tumble in energy stocks.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE rose 22.51 points, or 0.15 percent, to finish at 15,153.12. Six of the index's 10 main groups rose.

The index reversed course as investors brushed away concerns over North Korean tensions and the minutes from the U.S. Federal Reserve's last meeting.

"Maybe at the beginning of the day, it was weighing down the markets," said Manash Goswami, senior vice president, portfolio manager at First Asset ETFs. "We saw markets rise back up, and then after the Fed minutes ... you saw the markets continue to drift up."

The minutes for the June meeting showed that policymakers were increasingly split on the outlook for inflation and how it would affect the future pace of rate increases. heavyweights Bank of Nova Scotia BNS.TO rose 1.1 percent to C$78.67, while Royal Bank of Canada RY.TO advanced 0.8 percent to C$94.96. The overall financials group gained 0.7 percent.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.8 percent, as gold miners dominated. Barrick Gold Corp ABX.TO rose 3.3 percent to C$20.67, while Goldcorp Inc G.TO added 2.7 percent to C$16.64.

The information technology group rose 0.9 percent, in tandem with U.S. tech stocks. Shopify Inc SHOP.TO was one of the most influential gainers, jumping 4.3 percent to C$114.76.

Energy stocks, hurt by a 4 percent tumble in crude oil prices, capped advances, and gave back 2.2 percent. O/R

Raymond James said it had lowered its assumptions for oil and natural gas prices in 2017 and 2018, and downgraded shares of a string of Canadian producers.

Nine of the 10 biggest drags on the index were energy names, with Cenovus Energy Inc CVE.TO sliding 5.1 percent to finish at C$9.14. Crescent Point Energy Corp CPG.TO hit a record low of C$9.36 during the session and finished down 5.7 percent at C$9.38.

Regional airline operator Exchange Income Corp EIF.TO closed down 4.7 percent at C$31.10 after being targeted by a short-seller who said it does not generate enough cash to pay the dividends it provides investors. The company said it strenuously disagreed with a number of statements, assumptions and opinions in the report. issues outnumbered advancing ones on the TSX by 169 to 77, for a 2.19-to-1 ratio on the downside.

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