By Johann M Cherian
(Reuters) – Canada’s main stock index edged higher on Monday, supported by gains in the materials and financial sectors, as investors returned to markets amid uncertainty in the global banking sector.
At 10:07 a.m. ET (14:07 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 79.17 points, or 0.41%, at 19,466.89.
The financial sector, which accounts for nearly 30% of the index, added 0.7% with heavyweight banks rising 0.6%, as investors digested an emergency weekend rescue of Credit Suisse. [MKTS/GLOB]
“The TSX is heavily weighted in banks and today it looks like there’s some stabilization in the banking sector at least, initially based on UBS buying Credit Suisse,” said Allan Small, senior investment advisor at Allan Small Financial Group.
The materials sector <.GSPTTMT> added 0.7%, tracking an uptick in gold prices as investors rushed to the safe-haven asset amid the uncertainty in the global markets. [GOL/]
Over the past two weeks, the TSX has lost more than 5%, with the financial sector shedding nearly 10% as investors fear a global banking crisis.
All eyes will now be on the U.S. Federal Reserve’s rate-hike decision later in the week, to see if bank failures over the past weeks would nudge it to ease up on tightening its monetary policy.
Among stocks, Hexo Corp slid 2.0% after brokerage ATB highlighted considerable liquidity, dilution and going-concern risks for the pot stock. The healthcare sector housing the stock lost 0.4%.
Brookfield Corp added 1.4% after Credit Suisse upgraded its rating on the fund manager to “outperform” from “neutral.”
Investors await February domestic consumer inflation data and January retail sales data later in the week.
(Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai)
