Canadian stocks rose to a record as companies including Genworth MI Canada Inc. and Cenovus Energy Inc. reported better-than-expected earnings and U.S. growth expanded faster than forecast in the second quarter.
Toronto Stock Exchange’s benchmark S&P/TSX Composite Index added 78.27 points or 0.51 percent to 15,524.82 points, with all the weighed sectors in the green except for utilities.
The equities market in Toronto gained as the latest reading of U.S. GDP increased at an annual rate of 4 percent in the second quarter, indicating a robust recovery of the world’s biggest economy.
Financials, the most weighed sector at TSX, advanced 0.76 percent when investors’ confidence was boosted. Analysts believe the strong growth of U.S. economy would benefit Canada’s economy.
In response, Toronto-Dominion Bank rose 0.77 percent to 57.30 Canadian dollars (about 52.56 U.S. dollars), and Manulife Financial Corp. jumped 1.67 percent to 22.46 Canadian dollars per share.
Gains at the TSX were also driven by a rally in the info-tech sector, which soared 2.06 percent when leading company CGI Inc. climbed 0.96 percent to 38.82 Canadian dollars after it posted net earnings of 225.1 million Canadian dollars in third-quarter, representing a year-over-year improvement of 26.3 percent.
The energy sector grew 0.47 percent when Cenovus Energy Inc. reported oil sands production increased 33 percent and its net earnings tripled to 615 million Canadian dollars in the second quarter. Its stock price surged 2.44 percent to 33.61 Canadian dollars.
The healthcare sector moved up 1.61 percent as Canadian drug maker Valeant Pharmaceuticals International, Inc. gained 2.36 percent to 137.42 Canadian dollars.
Industrials added 0.79 percent when Statistics Canada reported Wednesday morning that its Raw Materials Price Index, which is in conjunction with industrial products, rose 1.1 percent, largely as a result of higher prices for crude energy products. The traditional industrial giant Bombardier Inc. rose 1.94 percent to 3.67 Canadian dollars.
However, the utilities moved down 0.98 percent when the Canadian investor-owned electric and gas distribution utility Fortis Inc. lost 0.62 percent to 33.55 Canadian dollars apiece, after the company announced Wednesday morning that an administrative law judge has recommended approval of the proposed acquisition of a U.S.-based energy service provider UNS Energy Corporation by a subsidiary of Fortis Inc.
On the currency front, the Canadian dollar closed lower to 0. 9173 U.S. dollar from 0.9209 U.S. dollar Tuesday.