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* TSX closes up 29.45 points, or 0.19 percent, at 15,786.03
* Index rises for the sixth straight day, posts new record
* Five of the TSX's 10 main groups end higher
By Fergal Smith
TORONTO, Feb 14 Canada's main stock index posted
a fresh record high on Tuesday as higher oil prices and bond
yields supported energy and financials, while auto suppliers
benefited from U.S. President Donald Trump's warm words for
Canadian trade the day before.
Bond yields jumped after Federal Reserve Chair Janet Yellen
said it would be unwise to wait too long to raise U.S. interest
Higher yields reduce the value of insurance companies'
liabilities and increase banks' net interest margins.
Manulife Financial Corp rose 1.5 percent to
C$24.95, while the overall financials group advanced 0.3
The group has soared more than 13 percent since the U.S.
presidential election, helped by the prospect of U.S. economic
stimulus and deregulation.
"Canadian banks are getting a bit pricey," said Ian Scott,
equity analyst at Manulife Asset Management.
"You are seeing a bit of a move but just not nearly as much
as you have seen in the past."
The consumer discretionary group climbed 0.7 percent, with
Magna International Inc gaining 1.2 percent to C$59.10.
Auto supplier stocks such as Magna had been held back by
investor worries of a proposed U.S. border adjustment tax, Scott
Imposition of such a measure would "hit Canadian exports
hard," said the C.D. Howe Institute in a research report.
On Monday, Trump said he only wants to tweak trade ties with
But his pledge to renegotiate the North American Free Trade
Agreement (NAFTA) to focus on Mexico is almost impossible and
Canada will not emerge unscathed, Canadian officials and trade
Energy gained 0.9 percent as oil prices rose.
U.S. crude oil futures settled 27 cents higher at
$53.20 a barrel but some gains were pared amid concerns about
rising supply from U.S. shale output.
The Toronto Stock Exchange's S&P/TSX composite index
closed up 29.45 points, or 0.19 percent, at 15,786.03.
It was the sixth straight day of gains for the index, which
has rallied nearly 37 percent from a three-year trough in
January last year.
The utilities group, which tends to underperform as bond
yields rise, fell 0.8 percent and the materials group, which
includes precious and base metals miners and fertilizer
companies, dipped 0.2 percent.
Teck Resources Ltd fell nearly 2 percent to
C$32.67 as copper pared some recent gains.
Copper prices declined 1.4 percent to $6,020.85 a
tonne and gold futures rose 0.4 percent to $1,229 an
Five of the index's 10 main groups ended higher.
(Reporting by Fergal Smith; Editing by Lisa Von Ahn and Diane