Canadian Market Up Marginally After BoC Interest Rate Decision

(RTTNews) - Canadian stocks are up marginally a little before noon on Wednesday, with shares from various sectors climbing up as investors digest the interest rate announcement from the Bank of Canada, and the latest batch of economic data.

Shares from communications, utilities, real estate, consumer discretionary, materials and healthcare sectors are among the prominent gainers. Energy stocks are weak, weighed down by lower crude oil prices.

The benchmark S&P/TSX Composite Index is up 25.02 points or 0.12% at 20,400.95 about half an hour before noon.

The Bank of Canada today held its target for the overnight rate at a 22-year high of 5% as expected, keeping it unchanged for a third straight meeting.

Policymakers at the central bank noted that there are further signs that monetary policy is moderating spending and relieving price pressures, but voiced concerns about risks to the outlook for inflation. They said they are prepared to raise the policy rate if needed, and added that the bank is continuing its policy of quantitative tightening.

The Ivey Business School said the Ivey Purchasing Managers Index in Canada rose to 54.7 in November, up from a reading of 53.4 in October, and expanding for a fourth straight month. Economists had expected the index to rise to 54.2.

Data from Statistics Canada showed the labor productivity in Canada decreased by 0.8% in the third quarter of 2023, following a 0.1% decline in the prior period.

Meanwhile, Canada's trade surplus rose to C$ 2.97 billion in October, from the downwardly revised C$ 1.12 billion in the previous month. Exports increased 0.1% to C$ 65.98 billion, while imports declined by 2.8% to C$ 63 billion in October.

Among the stocks in the communications sector, Rogers Communications (RCI.B.TO) is gaiing 2.5%. Cogeco Communications (CCA.TO) and Telus Corp (T.TO) are up nearly 2%, while BCE Inc (BCE.TO) and Quebecor Inc (QBR.B.TO) both are gaining about 1.5%.

Utilities stocks Boralex Inc (BLX.TO), Innergex Renewable Energy (INE.TO), Brookfield Infra Partners (BIP.UN.TO), Northland Power (NPI.TO) and Brookfield Renewable Partners (BEP.UN.TO) are up 2.3 to 3.5%.

Real estate stocks Northwest Healthcare Prop (NWH.UN.TO), Interrent Real Estate Investment (IIP.UN.TO), CDN Apartment (CAR.UN.TO), Colliers International (CIGI.TO) and Allied Properties (AP.UN.TO) are gaining 2 to 3%.

Brp Inc (DOO.TO), up 5.7%, is the biggest gainer in the Consumer Discretionary sector. Aritzia (ATZ.TO), Park Lawn Corp (PLC.TO), Linamar Corp (LNR.TO), Pet Valu Holdings (PET.TO), Magna International (MG.TO), Spin Master (TOY.TO) and Mty Food Group (MTY.TO) are up 1.8 to 4.5%.

Hudbay Minerals (HBM.TO), Lithium Americas Corp (LAC.TO), Capstone Mining Corp (CS.TO), Torex Gold Resources (TXG.TO), Lithium Americas Argentina (LAAC.TO) and CCL Industries (CCL.B.TO), up 3 to 5%, are the major gainers in the materials space.

Healthcare stocks Sienna Senior Living (SIA.TO), Tilray Inc (TLRY.TO) and Bausch Health Companies (BHC.TO) are up 1.2 to 1.5%.

Energy stock Baytex Energy (BTE.TO) is plunging more than 6%. International Petroleum Corp (IPCO.TO), Canadian Natural Resources (CNQ.TO), Vermilion Energy (VET.TO) and Suncor Energy (SU.TO) are down 3 to 4%.