TORONTO: Canada’s main stock index rose on Friday as financials rallied, while resource stocks retreated with commodities and investors waited for possible clues on the timing of U.S. interest rate hikes from Federal Reserve Chair Janet Yellen.
Financial stocks were among the most influential movers on the index after banks on Thursday reported better-than-expected second-quarter earnings even as they warned of further losses from oil loans in coming quarters.
Toronto-Dominion Bank rose 0.7 percent to C$57.88, and Brookfield Asset Management Inc advanced 1.3 percent to C$45.99, while the overall financials group was up 0.6 percent.
Shares of Valeant Pharmaceuticals International Inc rose 8.5 percent to C$37.85. The drugmaker received a joint takeover offer from Japan’s Takeda Pharmaceutical Co Ltd and TPG Capital Management LP this spring that it rejected, according to a source familiar with the matter.
Yellen is due to speak at an event hosted by Harvard University at 1:15 p.m. EDT (1715 GMT). Her speech will come after a number of Fed policymakers this week struck hawkish tones on the trajectory of interest rates.
At 10:42 a.m. EDT (1442 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 53.03 points, or 0.38 percent, to 14,102.23. Eight of the index’s 10 main groups were higher.
Both the consumer discretionary and information technology groups advanced 1.2 percent.
However, resources stocks were dragged lower by weaker commodity prices. The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.3 percent and the energy group retreated 0.2 percent.
U.S. crude prices were down 0.6 percent at $49.18 a barrel, while spot gold fell 0.4 percent.
