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CANADA STOCKS-TSX rallies as RBC notches biggest gains in four years
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CANADA STOCKS-TSX rallies as RBC notches biggest gains in four years
May 30, 2024 1:39 PM

*

TSX ends up 0.79% at 22,071.71

*

RBC, CIBC jump as earnings beat estimates

*

Energy gains despite lower oil prices

*

Technology falls 1.84%

(Updates at market close)

By Fergal Smith

May 30 (Reuters) - Canada's main stock index rebounded

on Thursday as Royal Bank of Canada ( RY ) reported stronger than

expected earnings to round out a mixed results season for

Canada's big six lenders, and U.S. data supported prospects of

Federal Reserve interest rate cuts.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 173.73 points, or 0.79%, at 22,071.71, after

it posted on Wednesday its lowest closing level in nearly four

weeks.

"On the banks' side, it was the haves and have nots ... It

has been a little bit more volatile in that sense this quarter,"

said Diana Avigdor, a portfolio manager and head of trading at

Barometer Capital Management.

Royal Bank of Canada ( RY ), which has the largest market

capitalization of any stock on the TSX, said the investment

banking environment looked promising as it surpassed profit

expectations. The lender's shares rose 5.19%, the biggest

advance since May 2020.

Canadian Imperial Bank of Commerce ( CM ) also beat profit

expectations, helping to lift its shares 7.01%.

The financials sector rose 1.89%, while energy

added 0.37% even as the price of oil settled 1.7% lower

at $77.91 a barrel.

Oil and gas companies are "exhibiting good corporate

discipline" by producing free cash flows, generating special

dividends for shareholders and doing stock buybacks, Avigdor

said.

Bond yields eased as the U.S. economy grew more slowly in

the first quarter than previously estimated and a key measure of

inflation ticked down, keeping the Fed on track to possibly

begin cutting interest rates at least once before the end of the

year.

The utilities sector, which includes many

high-dividend paying stocks that could particularly benefit from

rate cuts, advanced 1.51%. But technology was a drag,

falling 1.84%.

It was pressured by a decline of 6.84% for the shares of

Descartes Systems Group Inc ( DSGX ) after the company reported

quarterly results.

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