TSX Ends On Strong Note On Optimism About Interest Rates

(RTTNews) - The Canadian market ended on a buoyant note on Friday with investors picking up stocks amid rising optimism the Federal Reserve is done with interest rate hikes.

The mood remained bullish despite Fed Chair Jerome Powell calling speculation about interest rate cuts "premature" during remarks at Spelman College today.

Buying was so widespread that all the sectoral indices in the Canadian market moved higher. However, energy and consumer staples sectors, and to an extent - the financials sector - were a bit subdued.

The benchmark S&P/TSX Composite Index ended with a strong gain of 216.58 points or 1.07% at 20,452.87, the highest close since September 18.

The Health Care Capped Index climbed 3.42%. Tilray Inc (TLRY.TO) surged 6.2%. Sienna Senior Living (SIA.TO), Bausch Health Companies (BHC.TO) and Chartwell Retirement Residences (CSH.UN.TO) gained 2.1 to 3%.

The Communications Capped Index surged 2.79%. Quebecor Inc (QBR.B.TO), Rogers Communications (RCI.B.TO), Cogeco Communications (CCA.TO) and Telus Corp (T.TO) gained 2.8 to 3.3%, while BCE Inc (BCE.TO) ended 1.8% up.

The Real Estate Capped Index gained 2.24%, the Industrials Capped Index advanced 2.07%, and the Utilities Index climbed 2.01%. The indices tracking the performances of stocks from materials, consumer discretionary and technology sectors gained 1.67%, 1.62% and 1.24%, respectively.

Bank of Montreal (BMO.TO) gained about 2%. The bank reported fourth-quarter earnings of C$1.49 billion, or C$2.06 per share, compared to C$4.41 billion, or C$6.51 per share a year earlier. Excluding items, adjusted earnings were C$2.02 billion, or C$2.81 per share, compared to C$2.06 billion, or C$3.04 per share, in the previous year.

National Bank of Canada (NA.TO) climbed nearly 5% after reporting fourth-quarter net income of $768 million, up 4% from $738 million in the fourth quarter of 2022.

Data from Statistics Canada showed employment in Canada increased by 24,900 jobs in November, following an addition of 17,500 jobs in the previous month.

Meanwhile, the unemployment rate in Canada incrased to 5.8% in November, up from 5.7% in the previous month.

Average hourly earnings for permanent employees in Canada rose by 5% year-on-year to reach $35.16 in November.

Canada's manufacturing activity contracted in November, data from S&P Global showed. The S&P Global Canada Manufacturing PMI contraction accelerated to 47.7 in November from 48.6 in the previous month, slowing down for the seventh consecutive month.