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TSX ends up 0.3% at 22,167.03
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Materials sector adds 2.1%
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For the quarter, the index gains 5.8%
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Canadian economy grows 0.6% in January
(Updates at market close)
By Fergal Smith
March 28 (Reuters) - Canada's main stock index on
Thursday wrapped up another strong quarter by climbing to a new
all-time high, led by gains for resource shares as investors
eyed potential interest rate cuts in the coming months that
could stimulate economic growth.
The Toronto Stock Exchange's S&P/TSX composite index
ended up 59.95 points, or 0.3%, at 22,167.03, a record
closing high. The index also hit an intraday record high, at
22,220.91, eclipsing the previous record it set in April 2022.
The market will be closed for the Good Friday holiday.
"The trade in the last month has really turned to
reflation," said Mike Archibald, a portfolio manager at AGF
Investments. "Commodities are working extremely well. Banks have
started to rally both south of the border and up here in
Canada."
The record-setting rally came as data showed Canada's
economy growing 0.6% in January, its fastest growth rate in a
year. Still, investors stuck with bets the Bank of Canada would
begin cutting rates in June.
For the month of March, the TSX was up 3.8%, its fifth
straight month of gains. It advanced 5.8% in the first quarter,
after gaining 7.3% in the previous quarter.
"I do think there could be some legs to this commodity story
and if that's the case Canada is going to be in a pretty good
place for the second quarter," Archibald said.
Resource shares account for 30% of the TSX's weighting.
The materials sector, which includes metal miners and fertilizer
companies, climbed 2.1% on Thursday as the price of gold rose.
Nutrien Ltd ( NTR ), the world's largest producer of
potash fertilizer, is mulling divestments in South America,
according to sources with direct knowledge of the matter. The
company's shares were up 1.1%.
Energy also ended higher, rising 0.8%, as oil settled
up 2.2% at $83.17 a barrel.