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Roundup: Canadian stock market continues rally on less severe U.S. GDP slowdown

Xinhua, June 25, 2015 Adjust font size:

Canada's main stock market in Toronto Wednesday continued its advance as the latest U.S. economic data showed that the economic slowdown was less severe than previous estimated.

Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index was higher 42.60 points or 0.29 percent to 14,947. 51 points, rising for a third session in a row.

A setback in Greece's debt talks renewed investor concerns about final bailout program for the debt-shattered country, after Eurozone's officials failed to reach an agreement on Wednesday and is set to restart on Thursday.

But the Canadian equities market in Toronto was supported after the U.S. Department of Commence said Wednesday that the final read on first-quarter gross domestic product (GDP) in the U.S. decreased at an annual rate of 0.2 percent, better than expected.

The revised number, in line with market expectations, is considered as supportive for Canada's economic outlook in the second quarter since it is closely connected with U.S. economy.

"The revised first-quarter GDP numbers have lessened the extent of declining activity at the start of the year, although the data are still indicative of a disappointing stall in growth," according to a report issued by RBC Economics on Wednesday.

Financials advanced 0.42 percent when Bank of Nova Scotia rose 0.68 percent to 66.35 Canadian dollars (about 53.51 U.S. dollars), and Sun Life Financial Inc. was up 0.94 percent to 42.76 Canadian dollars per share.

Resources sectors led the rise in TSX. Metals and mining was up 1.59 percent, with the basic metals giant First Quantum Minerals Ltd. jumping 3.13 percent to 18.14 Canadian dollars.

Although oil prices lost ground on Wednesday, the energy sector rallied 0.8 percent. Enbridge Inc., Canada's crude oil and natural gas transporter and distributor, soared 1.58 percent to 60.47 Canadian dollars in its stock price.

Telecom also added 0.97 percent when Rogers Communications Inc. gained 1.78 percent after an Ontario court gave its approval for the largest wireless operator in Canada to buy Mobilicity for about 465 million Canadian dollars on Wednesday, a deal that is expected to trigger a series of transactions that affects wireless customers in Ontario, Alberta and British Columbia.

Industrials shed 0.98 percent when its heavyweight Canadian Pacific Railway Ltd. plunged 2.48 percent to 201.84 Canadian dollars.

However, thanks to record North American sales and lower Canadian dollar, Canada's auto manufacturers will likely see record high profits in years in 2015, according to The Conference Board of Canada Spring 2015 Industrial Outlook reports on Wednesday. Industry profits are forecast to reach 2.3 billion Canadian dollars in 2015, up from 1.3 billion Canadian dollars in 2014.

On the currency front, the Canadian dollar Wednesday was down to 0.8065 U.S. dollar, compared with 0.8108 U.S. dollar on Tuesday. Endite