(Adds portfolio manager quotes and details on industrials and
consumer discretionary sectors, updates prices)
* TSX closes up 97.98 points, or 0.63 percent, at 15,712.46
* Index posts its highest close since April 11
* Seven of the TSX's 10 main groups end higher
By Fergal Smith
TORONTO, April 24 Canada's main stock index rose
on Monday to a nearly two-week high, boosted by solid gains for
financials as investors cheered French election results that
limited the risk of another core member leaving the European
Some of the index's economically-sensitive sectors, such as
industrials, consumer discretionary and financials, benefited
most as the market's favored candidate won the first round of
the French election.
"We are seeing notable outperformance in the financial
sector," said Candice Bangsund, vice president, global asset
allocation at Fiera Capital Corporation.
"A lot of that is spillover from the rebound in European
financial stocks, but also from the backup in interest rates."
Higher bond yields reduce the value of insurance companies'
liabilities and increase net interest margins of banks.
The financials group gained 1.5 percent, with Royal Bank of
Canada climbing 1.6 percent to C$96.07 and insurer
Manulife Financial Corp up 3.0 percent at C$23.84.
Industrials gained 0.9 percent and consumer discretionary
stocks rose 0.7 percent, while the market awaited a U.S.
announcement on Wednesday of a tax code overhaul.
"They (the Trump administration) seem to be shifting their
focus back to the domestic pro-growth agenda," Bangsund said.
The Toronto Stock Exchange's S&P/TSX composite index
closed up 97.98 points, or 0.63 percent, to 15,712.46,
its highest close since April 11.
Seven of the index's 10 main groups ended higher.
The materials sector, which includes precious and base metal
miners and fertilizer companies, lost 0.8 percent as gold prices
Goldcorp Inc declined 2.1 percent to C$20.00 and
Barrick Gold Corp fell 1.0 percent to C$25.71. Barrick
is due to report quarterly earnings later on Monday, with
Goldcorp set to follow on Wednesday.
Smaller producer Semafo Inc slumped 15.7 percent to
C$3.32, its lowest in more than a year, after the gold miner
reduced its production outlook for 2017.
The energy group was little changed as oil prices fell. U.S.
crude oil futures settled 39 cents lower at $49.23 a barrel.
Home Capital Group Inc shares fell 9.1 percent to
C$17.50 after the country's biggest non-bank lender said founder
and former Chief Executive Officer Gerald Soloway would step
down from its board, days after regulators accused the company
of making "materially misleading statements" to investors.
Precision Drilling Corp dropped 3.3 percent to
C$5.64 after reporting a smaller-than-expected rise in revenue.
(Additional reporting by Alastair Sharp; Editing by Lisa Von
Ahn and Chris Reese)