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TSX Extends Yesterday's Gains -- Canadian Commentary

Canadian stocks continued to rally Thursday, helped by rebounding financials and health care stocks.

The S&P/TSX Composite Index was up 53 points, or 0.34 percent, to 15,573.98.

While resource stocks levelled off, the market remained in a joyful mood after the Federal Reserve said yesterday it plans to raise rates very gradually.

Instead of foreshadowing three more interest rate hikes in 2017, the Fed still sees only two modest rate hikes by year's end. Policymakers also retained their modest economic growth outlook.

Meanwhile, the Bank of England held its key interest rate at 0.25 percent this morning, as expected. It was a split vote, however, as one member considered it appropriate to hike the rate by a quarter point.

The defeat of right-wing nationalists in the Netherlands also boosted stocks.

Goldcorp Inc. (G.TO) and Barrick Gold (ABX.TO) were upgraded by RBC Capital Markets from Underperform to Sector Perform. Still, shares were down fractionally after yesterday's big advance.

Stylish winter jacket maker Canada Goose (GOOS) soared 40 percent in its market debut.

Transat (TRZ.A.TO) halved its quarterly loss on revenues of $689.3 million, compared with $725.7 million in 2016. Shares fell 2.6 percent.

Premium Brands Holdings (PBH.TO) turned in strong quarterly results and raised its dividend by 10.5% to $0.42 per share. The stock rose 5 percent.

A brief rally in oil prices fizzled Thursday amid lingering doubts about OPEC's supply quota plan.

The International Energy Agency said OPEC would be able to re-balance the oil market and end the global supply glut within months, but soaring U.S. production has generated skepticism.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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