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Roundup: Canadian stock market surges on rising oil, upbeat U.S. Fed statement

Xinhua, July 30, 2015 Adjust font size:

Canada's main stock market in Toronto on Wednesday moved up with a big rally as the rising oil prices and the upbeat statement from the U.S. Federal Reserve strengthened the trading sentiment.

Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index rallied 224.44 points, or 1.59 percent, to 14,301. 80 points.

Seven of the eight most weighed sectors were in the positive territory on the closing bell, after the index briefly turned downturns in the midday trading.

Energy led the increase by 2.89 percent after the Light Sweet Crude Oil for September delivery was higher 81 U.S. cents to close at 48.79 U.S. dollars per barrel on the New York Mercantile Exchange Wednesday.

And the most influential mover Financials jumped 2.42 percent following the upbeat Fed statement Wednesday, saying that "the labor market continued to improve, with solid job gains and declining unemployment," which are considered as optimistic trend of the economic growth.

The statement was relatively upbeat in Fed's assessment of the economy, and "a September rate hike is very much in play and remains our base case scenario," according to Michael Dolega, a senior economist from TD Bank.

Stimulated by the Fed's statement, most Canadian giant banks climbed higher when Royal Bank of Canada rose 2.76 percent to 75. 65 Canadian dollars (about 58.45 U.S. dollars), and Toronto- Dominion Bank rallied 2.87 percent to 52.64 Canadian dollars per share.

Meanwhile, the industrial sector logged a 2.6-percent increase when Bombardier Inc. surged 7.14 percent to 1.95 Canadian dollars, after it was reported that the Canadian biggest railway and aircraft maker was in talks with German engineering group Siemens AG around a rail merger. But Bombardier denied the report later Wednesday, and said that it is planning an initial public offering (IPO) of its rail business in the fourth quarter as the company seeks to reduce debt.

Metals and mining resumed the upswing by rising 2.49 percent, with the basic metal giant Teck Resources Ltd. going up 2.33 percent to 9.67 Canadian dollars a share.

By contrast, Health Care, the only loser in the TSX Wednesday, inched lower 0.36 percent when the sector made some downturns correction, following a two-day consecutive rise this week. Its heavyweight Valeant Pharmaceuticals International Inc. lost 1.23 percent to 329.79 Canadian dollars a share.

On the currency front, the Canadian dollar on Wednesday was modestly lower to 0.7726 U.S. dollar, when compared with 0.7736 U. S. dollar Tuesday. Endite