- Bank of Canada keeps rates steady, lowers growth estimate
- S&P/TSX extends 11-month high while energy producers retreat
Canadian stocks rose a fourth day to extend an 11-month high, as gains by gold and silver miners offset losses in oil producers and health-care companies, while the Bank of Canada kept the benchmark interest rate unchanged.
The S&P/TSX Composite Index added 0.1 percent to 14,493.8 at 4:00 p.m. in Toronto, advancing for a fourth consecutive session. Volume was in line with the 30-day average as six out of 10 industries increased. Equities worldwide rose a fifth day, while the S&P 500 Index in the U.S. was little changed.
The Bank of Canada lowered its growth estimate for the year to 1.3 percent, down from the bank’s April forecast of 1.7 percent, with the contribution from exports dropping to 0.3 percentage point from 1.1 points. The rate on overnight loans between commercial banks remained 0.5 percent in a decision published Wednesday from Ottawa.
“The fundamentals remain in place for a pickup in growth over the projection horizon, albeit in a climate of heightened uncertainty,” policy makers led by Governor Stephen Poloz said in a statement.
Commodity producers contributed the most to gains in the S&P/TSX today. First Majestic Silver Corp. jumped 9.5 percent to its highest since 2012, while MAG Silver Corp. climbed 6.1 percent. Pan American Silver Corp. rallied 4.8 percent after being upgraded to the equivalent of a buy by Scotia Capital Inc. Precious metals rose today, with silver up 1.2 percent and gold rising 0.8 percent.
Consumer staples companies rose with Alimentation Couche-Tard Inc. gaining 2.6 percent. Metro Inc. climbed a third day, jumping 1.7 percent.
Health-care shares fell the most in the S&P/TSX with Valeant Pharmaceuticals International Inc. reversing gains to tumble 7.1 percent after investor Andrew Left said he’d taken a short position in the company.
Energy producers dropped 1.1 percent, halting a three-day gain, with Precision Drilling Corp. leading losses. Ensign Energy Services Inc., Encana Corp., and Parex Resources Inc. each fell at least 3.7 percent as West Texas Intermediate crude in New York dipped below $45 a barrel.