(Adds portfolio manager quote, details on Keystone XL and
* TSX ends up 85.15 points, or 0.55 percent, at 15,433.61
* Nine of the TSX's 10 main groups end higher
By Fergal Smith
TORONTO, March 23 Canada's main stock index
closed higher on Thursday, led by heavyweight financial sector
shares a day after the federal budget held off from raising
taxes on investors.
The Toronto Stock Exchange's S&P/TSX composite index
rose 85.15 points, or 0.55 percent, to 15,433.61. On
Wednesday, it touched a three-month low intraday at 15,241.55.
"It's a rebound rally from the concerns that I think a lot
of people had that the capital gains tax was going to get
increased and taxes on dividends were going to get increased,"
said Rick Hutcheon, president and chief operating officer at RKH
Canada's Liberal government unveiled a stay-the-course
budget after the stock market closed on Wednesday.
Businesses had feared higher capital gains taxes would harm
their competitiveness just as U.S. rivals benefit from a break
in taxes and regulation under U.S. President Donald Trump.
The U.S. House of Representatives canceled Thursday's vote
on a healthcare bill. Losing the vote would bruise investors'
confidence in Trump's ability to deliver on his promises of tax
cuts and infrastructure spending.
The financials group, which contains many dividend-paying
stocks, rose 1 percent as a recent decline in bond yields lost
some momentum. Higher bond yields would reduce the value of
insurance companies' liabilities and increase net interest
margins of banks.
The energy group rose 0.4 percent even as oil prices
struggled to recover from four-month lows because of investor
concerns that OPEC-led supply cuts were not yet reducing record
U.S. crude inventories.
U.S. crude prices settled 34 cents lower at $47.70 a
The U.S. State Department will approve on Friday the permit
needed to proceed with construction of TransCanada Corp's
Keystone XL oil pipeline, according to two government
sources familiar with the process. TransCanada's shares rose 0.4
percent to C$61.76.
Enbridge Inc fell 1 percent to C$54.54. On
Wednesday, the company said it would cut about 1,000 positions
after buying Spectra Energy Corp of Houston.
Nine of the index's 10 main groups rose, with industrials
gaining 1 percent as railroad stocks climbed, and consumer
staples advancing 0.6 percent.
The materials group, which includes precious and base metals
miners and fertilizer companies, dipped 0.3 percent.
Silver Wheaton Corp fell 3.7 percent to C$27.51,
while Barrick Gold Corp was down 0.5 percent at
Gold futures fell 0.2 percent to $1,246.3 an ounce.
(Reporting by Fergal Smith; Editing by James Dalgleish and