TSX snaps losing streak as energy and financials rally

FILE PHOTO: The facade of the original Toronto Stock Exchange building is seen in Toronto

By Shristi Achar A and Fergal Smith

(Reuters) - Canada's main stock index ended higher on Friday, recouping a small part of its recent decline, as higher oil prices and a strong start to the domestic bank earnings season offset uncertainty about when the Federal Reserve will be able to stop raising interest rates.

The Toronto Stock Exchange's S&P/TSX composite index ended up 31 points, or 0.15%, at 20,219.19 after losses in the previous five sessions.

For the week, the index was down 1.4%, its third straight week of losses. On Thursday, it posted its lowest closing level in six weeks.

Wall Street closed well down on Friday as investors braced for the possibility of more aggressive rate hikes from the Fed as U.S. economic data pointed to resilient consumers.


"We talk about interest rates and central banks moving the market. But you have to understand that why the market moves further to the downside is because of the uncertainty," said Allan Small, senior investment advisor at Allan Small Financial Group.

"If the market can factor in what is going to happen, that is when you see the market move to the upside."

Most of the major sectors on the TSX lost ground, including a decline of 1.7% for technology, which is particularly sensitive to higher rates.

In contrast, heavily-weighted financials advanced 0.6% as Canadian Imperial Bank of Commerce trounced first-quarter profit estimates.

Its shares ended 2.7% higher, while Toronto-Dominion Bank shares rose 0.8% after the lender said it received all regulatory approvals to complete its $1.3 billion acquisition of New York-based boutique investment bank Cowen Inc.

Energy was also a bright spot, climbing 1.9% as oil settled 1.2% higher at $76.32 a barrel on the prospect of Russian export cuts.

(Reporting by Shristi Achar A in Bengaluru; Editing by Shailesh Kuber and Diane Craft)