TORONTO — Canada's main stock index rose to six-week highs on Tuesday, buoyed by a broad rally led by financial and energy stocks, as investors cautiously awaited for clues from the U.S. Federal Reserve on its next move.
The financial sector, which accounts for about a third of the index's weight, climbed 0.5 per cent. Individual gains within the group were modest, with Royal Bank of Canada (RY.TO) adding 0.9 per cent to finish at $92.98.
The Toronto Stock Exchange's S&P/TSX composite index rose 56.3 points, or 0.37 per cent, to 15,292.97. It touched as high as 15,315.27 during the session, a level not reached since Aug. 3.
Of the index's 10 main groups, utilities were the lone decliners, losing 0.1 per cent.
"It's a broad sector rally ... You've seen the TSX bounce back from the lows," said Manash Goswami, senior vice president, portfolio manager at First Asset ETFs. "Heading into tomorrow's Fed decision, we weren't doing too much. We're waiting to see what they're going to say."
Goswami is not expecting an interest rate increase, but said investors are keen for further guidance from the U.S. central bank on its plans to wind down its huge balance sheet and what the implications may be for the markets.
The energy group climbed 0.1 per cent as crude prices pulled back from near-five-month highs in advance of U.S. data that is expected to show a build in crude inventories.
Inter Pipeline Ltd (IPL.TO) rose 3.3 per cent to $23.81, while Cenovus Energy Inc (CVE.TO) advanced 2.1 per cent to $11.48.
The materials group, which includes precious and base metals miners and fertilizer companies, added 0.4 per cent.
Telecoms rose 0.9 per cent with Rogers Communications Inc (RCIb.TO) up 1.5 per cent to end at $64.60.
Advancing issues outnumbered declining ones on the TSX by 148 to 97, for a 1.53-to-1 ratio on the upside.
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