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TSX ends up 0.3%, at 27,993.43
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Eclipses Tuesday's record closing high
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Gildan Activewear ( GIL ) jumps 11.8% after making acquisition
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Hudbay Minerals ( HBM ) adds 14.8% on sale of copper project stake
(Updates at market close)
By Nikhil Sharma and Fergal Smith
Aug 13 (Reuters) - Canada's main stock index scaled a
new all-time high on Wednesday, helped by gains for the
financial and consumer discretionary sectors, as investors
cheered recent U.S. inflation data that has left the door open
to Federal Reserve interest rate cuts.
The S&P/TSX composite index ended up 72.17 points,
or 0.3%, at 27,993.43, surpassing Tuesday's record closing high.
"We're seeing equity markets continue to do well," said
Colin Cieszynski, chief market strategist at SIA Wealth
Management. "People remain confident the economy has held up,
and inflation has not taken off as much as people thought."
Data on Tuesday showed that U.S. consumer prices increased
marginally in July, reinforcing expectations that the Fed would
ease rates in September.
Investors expect the Bank of Canada to remain on hold for a
fourth straight meeting next month but are leaning toward a rate
cut in October. Policymakers were divided on how much monetary
policy could aid growth under current economic conditions,
minutes of the BoC's meeting last month showed.
"Canadian central bankers were dissuaded from delivering a
25 basis point cut in July, but the door remains open to resume
easing later this year," Tiago Figueiredo, a macro strategist at
Desjardins, said in a note.
The consumer discretionary sector rose 2.4%, led
by Gildan Activewear ( GIL ). Its shares jumped 11.8% after the
apparel manufacturer agreed to buy U.S. undergarments maker
Hanesbrands ( HBI ) for $2.2 billion.
Hudbay Minerals Inc ( HBM ) was another standout, with its
shares climbing 14.8% after the company sold a 30% stake in a
copper project located in Arizona to Mitsubishi ( MSBHF ) for
$600 million.
Heavily weighted financials added 0.7%, while real
estate ended 1.3% higher as bond yields declined.
The Canadian 10-year yield was down 3.9 basis
points at 3.396%.
Technology was a drag, losing 1%.