Canada’s main stock index rose on Wednesday to its highest closing level in five months, lifted by technology and industrial shares as the Federal Reserve signaled it could slow the pace of interest rate hikes.
The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) ended up 62.25 points, or 0.3%, at 20,282.26, its highest closing level since June 9.
“To the extent that investors are still bearishly positioned, there is a good chance that we are going to see further rally into the end of the year,” said Mike Archibald, a portfolio manager at AGF Investments.
Wall Street also gained ground after minutes from the Fed’s November meeting showed interest rate hikes may slow soon.
“Industrials continue to be a massive leader in this market and I view that as very positive for future prospects for the broader economy,” Archibald said.
“Many of the companies that I’m speaking to across a number of different industries are indicating that the demand environment for their products across a number of different industries still remains very robust.”
The industrials sector, which includes railroad and airline stocks, rose 0.4%, while technology ended 1.9% higher.
It was boosted by a 22.6% jump in shares of Converge Technology Solutions (CTS.TO) after the company commenced a strategic review process, including evaluations on a possible sale, merger or divesture.
Capping gains for the market was a drop in energy. The sector fell 1.2% as the price of oil settled 3.7% lower at $77.94 a barrel.
The move lower in oil came as the Group of Seven (G7) nations considered a price cap on Russian oil above the current market level and gasoline inventories in the United States built by more than analysts’ expected.