TORONTO, March 16 (Reuters) – Canada’s main stock index rose on Thursday, led by gains for financials as bond yields rose, while luxury parka maker Canada Goose Holdings Inc made its stock market debut, trading well above the price of its initial public offering.
The winter outerwear company’s shares traded at C$22.05 after it had set on Wednesday the price of its IPO at C$17 per share.Bond yields rebounded, lowering the value of insurance companies’ liabilities and increasing net interest margins of banks. Yields tumbled on Wednesday after the Federal Reserve raised interest rates but did not flag an accelerated pace of monetary tightening.The country’s major banks were among the most influential movers on the index, with Royal Bank of Canada gaining 1.1 percent to C$97.71, while the overall financials group gained 0.7 percent.Premium Brands Holdings Corp climbed nearly 4 percent to C$76.21 after reporting record fourth-quarter results and a 10.5 percent increase in its dividend.
At 11:13 a.m. ET (1513 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 60.96 points, or 0.39 percent, to 15,581.87.The materials group, which includes miners and fertilizer companies, added 0.2 percent as base and precious metal prices rose.Gold futures rose 2.3 percent to $1,227.2 an ounce, and copper prices advanced 0.8 percent to $5,910 a tonne.Eight of the index’s 10 main groups were higher, with energy unchanged as oil prices edged lower. U.S. crude prices were down 0.14 percent at $48.79 a barrel.Oil prices jumped on Wednesday after a dip in U.S. crude inventories that suggested OPEC-led output cuts were starting to drain supplies.Foreign investment in Canadian securities dropped to its lowest level in more than a year in January, as non-residents bought bonds while selling stocks and money market paper, Statistics Canada said. (Reporting by Fergal Smith Editing by W Simon)