Canada Stocks: Resource shares help push Toronto market higher

iA

13/04/2022 21:25

(Adds investor quotes and details throughout; updates prices)
    * TSX ends up 122.61 points, or 0.6%, at 21,838.02
    * Energy advances 1.7%; oil settles 3.6% higher
    * Materials adds 1.6% as gold climbs
    * Bank of Canada hikes interest rates

    By Fergal Smith
    TORONTO, April 13 (Reuters) - Canada's main stock index rose
on Wednesday, boosted by energy and material stocks, as the Bank
of Canada raised interest rates by half a percentage point in a
widely anticipated move to combat surging inflation.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 122.61 points, or 0.6%, at 21,838.02.
    "Energy is up, materials are up. That's really what's
driving the ship for now," said Allan Small, senior investment
advisor of the Allan Small Financial Group with iA Private
Wealth.
    While most stock markets are grappling with a surge in
inflation and a possible economic slowdown, the TSX hit a record
high just last week. It has climbed 2.9% this year, among the
few global benchmarks to make ground as surging commodity prices
boost mining and energy shares.
    The energy group rose 1.7% as oil prices climbed. U.S. crude
oil futures  CLc1  settled 3.6% higher at $104.25 a barrel as a
large increase in U.S. crude inventories failed to soothe
worries about tight global supply.  urn:newsml:reuters.com:*:nL2N2WB04X
    The materials group, which includes precious and base metals
miners and fertilizer companies, added 1.6%. Gold  XAU=  was up
0.5% at about $1,977 per ounce.
    Among sectors that lost ground, was financial services. It
slipped 0.2% to post its lowest closing level in nearly four
months.
    The decline came as Wall Street peers took a hit from
JPMorgan Chase & Co  JPM.N  reporting a quarterly profit slump
and the Bank of Canada raised interest rates by half a
percentage point - its biggest single move in more than two
decades.  urn:newsml:reuters.com:*:nL3N2WB269 urn:newsml:reuters.com:*:nL2N2WB0QL
    Banks tend to benefit from higher rates but are also
sensitive to the economic outlook.
    "Everybody seems to be pricing in a lot higher rates in a
very short period of time and everybody believes that makes
things difficult for the economy to grow," Small said.

 (Reporting by Fergal Smith; Additional reporting by Sruthi
Shankar in Bengaluru; Editing by Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446;))