TSX Ends Marginally Up After Surprise Drop In Headline Inflation

(RTTNews) - The Canadian market ended slightly higher on Tuesday, thanks largely to data showing a surprise fall in the nation's headline inflation aiding sentiment.

The mood, however, remained cautious right through the day's trading session as investors awaited the Federal Reserve's monetary policy announcement on Wednesday.

The benchmark S&P/TSX Composite Index ended with a gain of 23.40 points or 0.11% at 21,860.58. The index, which briefly slipped below the flat line to 21,832.73 around late morning, touched a high of 21,931.38 in the session.

Data from Statistics Canada showed that the consumer price index rose 2.8% year-on-year, down from a 2.9% gain in January. Economists had expected inflation to rise to 3.1%.

On a seasonally adjusted monthly basis, consumer prices moved up 0.1%, compared to a 0.1% fall in the prior month. Core CPI, excluding food and energy, held steady at 0.1%.

The surprise drop in headline inflation has raised expectations the Canadian central bank will consider reducing rates sometime soon.

Gildan Activewear (GIL.TO) soared nearly 11%. The apparel maker announced that the board has decided to put the company up for sale following a review by a special committee which was constituted after receiving a confidential interest to acquire Gildan.

West Fraser Timber (WFG.TO) gained about 3.25%. Morguard Corporation (MRC.TO), Bombardier Inc (BBD.B.TO), Canadian Tire Corporation (CTC.A.TO), TFI International (TFII.TO), Precision Drilling Corporation (PD.TO), Toromont Industries (TIH.TO), RB Global (RBA.TO) and CGI Inc (GIB.A.TO) climbed 1.5 to 3%.

Constellation Software (CSU.TO) and Colliers International (CIGI.TO) ended higher by 1.3% and 1%, respectively.

Celestica Inc (CLS.TO) ended lower by about 3.5%. Newmont Corporation (NGT.TO), Canadian Pacific Kansas City (CP.TO), Franco-Nevada Corporation (FNV.TO) and Teck Resources (TECK.B.TO) dropped 1.6 to 2.25%.