Sept 19 (Askume) – Canada’s main stock index hit a record high on Thursday, boosted by technology stocks, while investors welcomed a sharp interest rate cut by the Federal Reserve.
The Toronto Stock Exchange S&P/TSX Composite Index (.GSPTSE) rose 210.38 points, or 0.89%, to 23,802.98.
Investors around the world have reacted positively to the Fed’s 50-basis-point rate cut, more than a year after keeping policy rates at a two-decade high .
Policymakers expect to cut rates by another half percentage point by the end of the year. Analysts believe the policy easing could help shore up the softening US economy.
The rate cut “is a signal that the Fed is providing support in hopes of getting the economy back into a weaker position, and investors are taking that into account and are raising interest rates,” said Brian Madden, chief investment officer at First Avenue Investment Counsel. “Reserves. “Investments.
Investors also assessed weekly U.S. unemployment benefits data , which fell to a four-month low last week and showed strong job growth in September and continued economic expansion in the third quarter.
Ivanhoe Mines Ltd. (IVN.TO), Lundin Minerals Inc. (LUN.TO) and Hudbay Minerals Inc. (HBM.TO) rose 4-6% and were among the top gainers on the overall index. The Toronto Stock Exchange is up 13.3% this year.
At least eight sectors of the index posted gains, with four of them rising more than 1%.
The Canadian information technology (.SPTTTK) sector was the biggest gainer on the regional index, rising 2.4%, led by a 5.2% gain in Bitfarms (BITF.TO) .
The heavyweight energy sector (.SPTTEN) followed crude oil prices and rose 1.5%, benefiting from the Federal Reserve’s interest rate cut. Crude oil and gold are Canada’s biggest exports.
In the oil market, West Texas Intermediate crude futures rose 1.1%, while Brent crude futures rose 1.1%. Gold prices rose 0.9%.
