TSX Ends On Firm Note After BoC Interest Rate Announcement

(RTTNews) - Despite paring a substantial portion of its intraday gains, the Canadian market ended on a firm note on Wednesday, thanks to strong buying in several stocks from communications, healthcare, energy and materials sections.

Real estate and industrials shares also ended mostly higher. Technology and financials shares gave up early gains and ended on a mixed note.

A positive reaction to the Bank of Canada's interest rate decision contributed to the market's uptick today. The Bank of Canada today announced a less than expected hike in interest rates.

Citing elevated inflation, the Canadian central bank announced its sixth consecutive interest rate hike of the year, but at 50 basis points, the hike was less than economists' expectations of a 75 basis point increase.

The bank now expects Canadian GDP growth to slow from 3.25% this year to just under 1% next year and 2% in 2024.

The bank said that interest rates will need to rise further due to elevated inflation and inflation expectations. It also reiterated its commitment to restore price stability for Canadians and said it will continue to take action as required to achieve the 2% inflation target.

The benchmark S&P/TSX Composite Index, which rallied to 19,435.91, ended the session with a gain of 182.75 points or 0.96% at 19,279.76.

Canopy Growth Corporation (WEED.TO) climbed 8.3% on strong volumes. Shaw Communications (SJR.B.TO), CES Energy Solutions (CEU.TO), Athasca Oil Corporation (ATH.TO) and Lundin Mining (LUN.TO) gained 6.2 to 7.2% on huge volumes.

Baytex Energy (BTE.TO), Tamarack Valley Energy (TVE.TO), Whitecap Resources (WCP.TO), First Quantum Minerals (FM.TO), Cenovus Energy (CVE.TO), Crescent Point Energy (SPG.TO) and Suncor Energy (SU.TO) gained 1.7 to 4%.