CANADA STOCKS-TSX ends near flat for the week as financial shares rally

By Reuters News
The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren

By Fergal Smith

TORONTO, Sept 25 (Reuters) - Canada's main stock index ended higher on Friday, led by gains for financial shares, as domestic bond yields pulled back from multi-year highs.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended up 94.43 points, or 0.3%, at 35,800.89, a day after posting its lowest closing level in eight days. For the week, the index was barely changed, dipping 0.02%.

  • "Rising bond yields are a headwind for the market because it suggests there's expectations of higher interest rates and rate hikes," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

  • "So the decline in bond yields is short-term, at least, positive," Cieszynski said. "The headwinds fade a little bit and that's helped the markets pick up today."

  • The Canadian 10-year yield eased 7.5 basis points to 3.923%, after touching its highest level since October 2023 at 4.011% during Thursday's session.

  • Preliminary domestic data showed that wholesale trade declined 1.5% in August from July.

  • Heavily weighted financials .SPTTFS added 1.1%, helped by gains for major banks.

  • National Bank of Canada NA.TO announced plans to buy back up to 10 million shares. Its shares ended 1.4% higher.

  • Shares of auto parts supplier Magna International MG.TO rose 4.7%, which helped lift consumer discretionary .GSPTTCD by 2.2%.

  • Energy .SPTTEN was a drag, falling 0.8%, as U.S. crude oil futures settled 2.3% lower at $92.41 a barrel on mounting hopes for a truce between the US and Iran.

  • Technology .SPTTTK was down 1.1%, with BlackBerry BB.TO shares falling 5.7%.

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