(Adds analyst quotes and details to total, updates prices)
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The TSX ended up nearly 1% at 19,279.76
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The BoC is increasing by half a percentage point
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Energy increases by 1.8%; oil settled 3% higher
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Shares of Rogers Communications jumped 5.8%
By Fergal Smith
TORONTO, Oct 26 (Reuters) – Canada’s main stock index rallied on Wednesday to its highest closing level in more than three weeks, as a smaller-than-expected interest rate hike by the Bank of Canada sparked hope that the central bank is about to end. of the tightening of this cycle.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 182.75 points, or nearly 1%, at 19,279.76, its highest closing level since Oct. 4.
“This bear market rally is about to end, but the Bank of Canada has other plans,” Edward Moya, senior market analyst at OANDA in New York, said in a note.
The BoC raised its benchmark rate by half a percentage point, falling short of calls for another 75 basis point move, and said it was nearing the end of its historic tightening campaign.
“We think they will probably raise another 25 bps (basis point) in December to end the hiking cycle,” said Tiffany Wilding, North American economist at PIMCO.
Toronto’s energy market group rose 1.8% while US crude futures settled 3% higher at $87.91 a barrel.
The materials group, which includes precious and base metal miners and fertilizer companies, added 1.8%, while industrials finished 1.3% higher.
Shares of Rogers Communications Inc rose 5.8%, while shares of Shaw Communications Inc rose 7.2% as investors bet Canada was likely to approve Rogers Communications’ bid for Shaw. (Reporting by Fergal Smith; Additional reporting by Shashwat Chauhan in Bengaluru; Editing by Cynthia Osterman)