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CANADA STOCKS-TSX posts fresh record high as financials climb
February 13, 2017 / 4:15 PM / 10 months ago

CANADA STOCKS-TSX posts fresh record high as financials climb

* TSX up 19.02 points, or 0.12 percent, at 15,748.14

* Index touches a new intraday record high of 15,769.66

* Five of the TSX’s 10 main groups rise

TORONTO, Feb 13 (Reuters) - Canada’s main stock index rose on Monday to a fresh all-time peak as heavyweight financial shares climbed, while lower oil and gold prices weighed on the energy and materials groups.

Wall Street’s three main indexes also reached record intraday highs as investors focused again on the U.S. reflation trade after a brief lull. U.S. President Donald Trump vowed on Thursday to make a major tax announcement in the next few weeks.

At 10:43 AM ET (1543 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 19.02 points, or 0.12 percent, to 15,748.14.

It touched a record intraday high of 15,769.66 and has rallied more than 36 percent from a three-year trough in January last year.

Still, a rising domestic stock market will barely lift the confidence of ordinary Canadians, who are more concerned about job prospects in an economy threatened by a more protectionist United States, economists say.

Canada sends 75 percent of its exports to the United States and its prime minister, Justin Trudeau, will look to nurture economic ties when he visits Trump on Monday.

Some of the most influential movers on the index were banks and insurance companies as bond yields climbed ahead of testimony this week by U.S. Federal Reserve Chair Janet Yellen.

Higher bond yields reduce the value of insurance companies’ liabilities and increase net interest margins of banks.

Royal Bank of Canada rose 0.8 percent to C$97.59 and Manulife Financial Corp climbed 1.1 percent to C$24.67, while the overall financials group gained 0.6 percent.

Five of the index’s 10 main groups were higher, with industrials rising 0.7 percent as railroad stocks gained ground.

The materials group, which includes precious and base metals miners and fertilizer companies, fell 0.3 percent.

Teck Resources Ltd rose 2.5 percent to C$33.40 as copper reached its highest since May 2015 on supply curbs.

But gold stocks were weighed by lower gold prices, with Goldcorp Inc falling 1.8 percent to C$21.84.

Gold futures fell 1.1 percent to $1,220.3 an ounce and copper prices advanced 0.8 percent to $6,137 a tonne.

The energy group declined 0.8 percent as oil fell in response to growing evidence that U.S. production is rising.

Canadian Natural Resources Ltd retreated 0.9 percent to C$39.11, while U.S. crude prices were down 1.6 percent at $53 a barrel. (Reporting by Fergal Smith; Editing by Andrea Ricci)

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