Canadian stock market rises on central bank's interest rate decision

16/04/2015 11:56 AST

Canada's main stock market in Toronto ended higher on Wednesday as the Bank of Canada announced that it is maintaining its target for the overnight rate at 0.75 percent, in line with market expectations.

Toronto Stock Exchange's benchmark S&P/TSX Composite Index gained 61.59 points, or 0.4 percent, to 15,450.87 points, with seven of the eight most weighed sectors in the rising streak.

The central bank said in a statement that the current degree of monetary policy stimulus remains appropriate and therefore it is maintaining the target for the overnight rate at 0.75 percent.

In response, the most weighed sector financials climbed 0.87 percent, with Manulife Financial Corp. up 0.68 percent to 22.28 Canadian dollars (about 18.11 U.S. dollars), and TD Bank moving higher 0.99 percent to 55.90 Canadian dollars per share.

The resources shares continued its momentum with the energy sector leading the TSX increase by 2.58 percent, boosted by surging oil prices. Light, sweet crude for May delivery gained 3.1 U.S. dollars to settle at 56.39 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery moved up 1.89 U.S. dollars to close at 60.32 U.S. dollars a barrel.

Most of energy giants rallied with Canadian Oil Sands Ltd. jumping 6.38 percent to 12.84 Canadian dollars, and Suncor Energy Inc. also advancing 1.93 percent to 40.67 Canadian dollars.

Metals and Mining, another group of the resources shares, climbed 1.5 percent while Barrick Gold Corp. rallied 1.09 percent to 15.79 Canadian dollars, and Yamana Gold Inc. strengthened 4.18 percent to 4.99 Canadian dollars. In other gainers, Info Tech and Telecom advanced 1.03 percent and 0.10 percent, respectively.

However, healthcare shares bucked the trend, slumped 2.81 percent, when its leading companies Catamaran Corp. plunged 1.88 percent to 73.25 Canadian dollars and Valeant Pharmaceuticals International, Inc. dived 3.10 percent to 252.82 Canadian dollars. Industrials inched up 0.08 percent amid the downbeat manufacturing data released by Statistics Canada on Wednesday. Manufacturing sales declined 1.7 percent to 50.0 billion Canadian dollars in February, the fourth decrease in five months. The drop reflected lower sales of motor vehicles and reduced production of aerospace products and parts.

Xinhua News Agency