{"id":205616,"date":"2019-03-07T03:41:05","date_gmt":"2019-03-07T08:41:05","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=205616"},"modified":"2019-03-07T03:41:05","modified_gmt":"2019-03-07T08:41:05","slug":"bank-of-canadas-interest-rate-decision-helps-utilities-and-telecom-sectors","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/03\/07\/bank-of-canadas-interest-rate-decision-helps-utilities-and-telecom-sectors\/","title":{"rendered":"Bank of Canada’s interest rate decision helps utilities and telecom sectors"},"content":{"rendered":"
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The S&P\/TSX composite index closed up 5.53 points to 16,092.07 after hitting an intraday peak of 16,145.80, a high for the year. (Pexels Photo)<\/figcaption><\/figure>\n

TORONTO \u2014 Canada’s main stock index moved just slightly Wednesday after the Bank of Canada’s decision not to increase interest rates helped interest-sensitive sectors and weakened the loonie.<\/p>\n

The S&P\/TSX composite index closed up 5.53 points to 16,092.07 after hitting an intraday peak of 16,145.80, a high for the year.<\/p>\n

The market was led by the utilities and telecommunications sectors, which each gained nearly one percentage point.<\/p>\n

A benign interest rate environment in light of the central bank’s decision Wednesday is supportive for those sectors, says Anish Chopra, managing director with Portfolio Management Corp.<\/p>\n

\u201cIf you’re an investor in utilities, those are safety areas which generally trade along with rates. So the fact that rates are going to stay stable is positive for utilities.\u201d<\/p>\n

The REITs sector also rose as is typically the case.<\/p>\n

These sectors would be expected to decrease had the central bank unexpectedly increased rates.<\/p>\n

The Canadian dollar decreased by nearly half a cent. It traded at an average of 74.52 compared with an average of 74.93 cents US on Tuesday.<\/p>\n

The move was propelled by the interest rate path along with the weak economic environment that, in part, prompted the bank’s decision, said Chopra.<\/p>\n

Seven of the 11 sectors of the TSX rose. Health care led on the downside, falling 1.9 per cent, followed by energy and materials.<\/p>\n

The April crude contract was down 34 cents at US$56.22 per barrel and the April natural gas contract was down 4.3 cents at US$2.84 per mmBTU.<\/p>\n

The price of West Texas Intermediate fell slightly as U.S. fuel stockpiles dropped during the week to offset an increase of 7.1 million barrels of crude inventories.<\/p>\n

The April gold contract was up US$2.90 at US$1,287.60 an ounce and the May copper contract was down 1.5 cents at US$2.92 a pound.<\/p>\n

\u201cSo those sectors are actually just following the underlying commodities that are related to them,\u201d added Chopra.<\/p>\n

In New York, the Dow Jones industrial average was down 133.17 points at 25,673.46. The S&P 500 index was down 18.20 points at 2,771.45, while the Nasdaq composite was down 70.44 points at 7,505.92.<\/p>\n

The U.S. markets fell on a quiet day amid restlessness about a trade deal being reached with China.<\/p>\n

\u201cIt’s just one of those quiet days where it’s a bit flat and there’s no real one driver doing anything.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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