STOCKS CANADA-TSX rallies as higher dividends help support financial stocks

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Band Fergal Smith

TORONTO, December 2 (Reuters)The main Canadian stock index rebounded Thursday from a seven-week low in the previous session, with financials contributing to widespread gains as major lenders raised dividends.

Toronto Stock Exchange S & P / TSX Composite Index .GSPTSE finished up 297.43 points, or 1.45%, to 20,762.03, after posting its lowest close since Oct. 12 on Wednesday.

Wall Street has also rebounded as market participants did well while digesting the implications of a changing pandemic. The Omicron variant scared investors for about a week.

“The market is awaiting confirmation of the seriousness of the new variant of COVID-19, the extent to which it eludes existing vaccines and its degree of contagiousness, this will likely dictate the global response in terms of restrictions,” said Russ Mold, principal investment at AJ Bell.

Financials, which account for about 30% of the Toronto market, gained 2.2%. Toronto-Dominion Bank TD.TO and Canadian Imperial Bank of Commerce CM.TO joins rivals in announcing higher dividends and share buybacks.

TD rose 4.9%, while CIBC ended down 2.8% after missing earnings estimates due to rising costs.

The top 11 sectors finished higher.

The energy sector advanced 1.8% as oil prices rebounded after OPEC + maintained its policy of gradually increasing production. U.S. Crude Oil Futures CLc1 was up 1.4% to $ 66.50 a barrel.

Consumer discretionary stocks gained 2.4%, helped by gains at Restaurant Brands International Inc QSR.TO and Magna International Inc MG.TO.

The government of Canadian Prime Minister Justin Trudeau will present new limited spending in a budget update to be released later this month, a source said, as inflation soars and some business groups and opposition politicians are calling for restraint.

(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Peter Cooney)

((fergal.smith@thomsonreuters.com; +1 647 480 7446;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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