By Johann M Cherian
(Reuters) – Canada’s benchmark stock index edged higher on Wednesday on gains in commodity and financials stocks while investors awaited the U.S. Federal Reserve’s decision on interest rates.
The Fed’s two-day policy meeting will end at 2 p.m. ET (1800 GMT), with investors keeping a close eye on a press conference by Chair Jerome Powell for an expected raise in rates by a quarter of a percentage-point.
At 10:07 a.m. ET (14:07 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 48.55 points, or 0.25%, at 19,703.47.
“What’s going to be critical is the type of language utilized in the press conference after the rate decision,” said Mike Archibald, vice-president and portfolio manager at AGF Investments.
“We’re probably going to see something that looks a little bit more conservative going forward, given the issues in the banking sector.”
The energy sector added 0.4%, while materials stocks rose 0.6%, tracking strength in bullion prices. [GOL/]
Rate-sensitive financial stocks rose 0.4%.
Canadian equities traded through a volatile February and witnessed a massive selloff in March as investors began to lose confidence in the global financial system following the collapse of two mid-sized U.S. lenders.
Quarter-to-date, the TSX is up 1.7%, clinging to early gains from January when investors returned to battered markets from 2022.
Among company news, Africa Oil Corp advanced 3.9% after brokerage Scotiabank upgraded the oil exploration firm to “sector outperform” from “sector perform”.
Activist investor Engine Capital urged Parkland Corp to look at strategic options, including the sale or spinoff of non-core assets, to become a more focused fuel and convenience retailer, sending its stock 7.1% higher.
Canada Deposit Insurance Corp is reviewing deposit insurance limits to safeguard the country’s financial system, the Bank and Trust Companies Association said.
(Reporting by Johann M Cherian in Bengaluru; Editing by Shweta Agarwal)
