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Roundup: Canadian stock market rises after Liberal sweeps to power

Xinhua, October 21, 2015 Adjust font size:

Canada's main stock market in Toronto moved higher on Tuesday as investors expected that a victory by the Liberal Party could spell more government spending on infrastructure to kickstart growth.

The Toronto Stock Exchange's benchmark Standard & Poor's / TSX Composite Index climbed higher 83.54 points, or 0.61 percent, to 13,841.92 points on the closing bell.

Market sentiment was buoyed after Liberal Party's win with a majority of seats in House of Commons on Monday.

Justin Trudeau, who is set to become Canada's new prime minister, promised to reform the tax system and inject billions of Canadian dollars into infrastructure projects including repairing roads, building bridges and improving waste water treatment plants across the country.

All the major sector closed in the positive territory except health care and info-tech sectors, plummeting 6.07 percent and 0.91 percent, respectively.

Industrials increased 1.48 percent as investors expect more infrastructural investments, which are beneficial to the shares of the transportation companies.

Canadian National Railway Company advanced 1.93 percent to 78.59 Canadian dollars (about 60.54 U.S. dollars) while Canadian Pacific Railway Limited jumps 3.42 percent to 196.72 Canadian dollars.

With a Liberal win, infrastructure is set to take a bigger role, according to an observation report issued by TD Bank on Tuesday. However, "election results are unlikely to have a meaningful impact. The boost in growth from infrastructure spending will help take up economic slack," the report said.

The most influential sector financials also added 0.78 percent ahead of the upcoming interest rate announcement by Bank of Canada on Wednesday, as most of analysts believed that the central bank will keep its current interest rate at 0.5 percent.

Other gainers included resources sectors, with energy up 1.42 percent ,and the mining sector higher 0.75 percent.

On the currency front, the Canadian dollar on Tuesday edged higher to 0.7703 U.S. dollar, compared with 0.7681 U.S. dollar on Monday. Enditem