(Adds portfolio manager quotes and details on Bank of Canada's
Poloz, updates prices to close)
* TSX ends up 25.75 points, or 0.18 percent, at 14,521.98
* Seven of the TSX's 10 main groups move higher
By Fergal Smith
TORONTO, Sept 20 Canada's main stock index rose
to a one-week high on Tuesday as shares of banks and other
financial sector companies climbed, while the energy sector
weighed as oil prices hit six-week lows intraday.
The financials group, which accounts for 35 percent of the
index's weight, gained 0.6 percent as investors braced for the
outcomes of Federal Reserve and Bank of Japan policy meetings on
Royal Bank of Canada advanced 0.4 percent to C$81.06
and Bank of Nova Scotia added 0.6 percent to C$70.43.
Today's rally shows that investors still have faith in major
central banks to keep interest rates low, said Ian Scott, a
portfolio manager at Manulife Asset Management.
The interest-rate-sensitive telecommunications sector rose
0.5 percent, while both the consumer discretionary and consumer
staples sectors gained more than 0.8 percent and technology
stocks advanced 1.3 percent.
"There has just been a shift toward some info-tech
(information technology stocks) lately in general because they
do have some good growth," Scott said.
The Toronto Stock Exchange's S&P/TSX composite index
closed up 25.75 points, or 0.18 percent, at 14,521.98.
It touched its highest since Sept. 12 at 14,573.25.
Seven of the index's 10 main groups ended higher.
The energy group fell 1 percent as U.S. oil prices
fell to the lowest in six weeks before settling modestly higher.
One of the most influential weights on the index was Encana
Corp, which fell 7.6 percent to C$12.04 after the
natural gas producer said late on Monday it will issue 107
million new shares to raise just more than $1 billion.
Cenovus Energy Inc declined 1.3 percent to C$17.52.
The materials group, which includes precious and base metals
miners and fertilizer companies, edged 0.1 percent higher.
Barrick Gold's Veladero gold mine in Argentine,
closed by the government last week after a solution containing
cyanide leaked, could resume operations in the next two weeks,
the company's president said on Monday.
Its shares were unchanged at C$22.71.
Agrium Inc advanced 0.8 percent to C$119.81. The
company's CEO said that tough farm conditions make it the right
time for a merger with Potash Corp of Saskatchewan Inc.
Canadian interest rates will stay low for longer as the
economy faces strong headwinds and business investment is weaker
than expected, but government spending on infrastructure will
help growth, Bank of Canada Governor Stephen Poloz said.
(Additional reporting by Alastair Sharp; Editing by Nick
Zieminski and James Dalgleish)