Equities in Canada`s largest centre secured a third straight weekly advance as the nation’s largest lenders extended a rally to a fifth day amid quarterly results and the prospect for higher interest rates in the U.S.
The S&P/TSX Composite Index advanced 56.03 points to close the day and a short week at 14,105.23, finishing with a 1.3% weekly gain, its best in a month. The index has surged almost 20% since reaching a two-year low on Jan. 20 and is up more than 8% on the year so far.
Markets were closed last Monday for Victoria Day.
The Canadian dollar slid 0.38 cents to 76.68 cents U.S.
Royal Bank of Canada rose 55 cents to $80.55, as financial services stocks rose with nine of 10 industries in the Canadian equity benchmark. A gauge of the nation’s largest lenders is on a five-day rally, the longest in six weeks, trading near its highest level in more than a year.
Toronto-Dominion Bank, Royal Bank and Canadian Imperial Bank of Commerce reported second-quarter results ahead of expectations Thursday, while Bank of Nova Scotia is scheduled to post its earnings on May 31.
TD shares gained 21 cents to $57.67, while CIBC shares dipped 11 cents to $102.19. Scotiabank shares soared 49 cents to $65.00.
Valeant Pharmaceuticals International added $2.19, or 6.3%, to $37.08 as health-care stocks jumped the most in the S&P/TSX. Reports surfaced Friday that the drug maker rejected a takeover bid from Takeda Pharmaceutical Co. and investment firm TPG in the spring.
Information technology also enjoyed an upward day, as BlackBerry forged ahead 16 cents, or 1.7%, to $9.44.
Gold stocks, on the other hand, went in the other direction, as Kinross Gold wilted 34 cents, or 5.8%, to $5.52, while Yamana Gold stumbled 26 cents, or 4.6%, to $5.44.
ON BAYSTREET
The TSX Venture Exchange tumbled 11.39 points to 668.54.
All but three of the 13 TSX subgroups were positive on the day, as health-care soared 1.9%, information technology gained 1.7%, and consumer discretionaries took on 1.6%.
The three laggards were gold, down 2.3%, materials, off 1.3%, and telecoms, inching back 0.01%.
ON WALLSTREET
Stocks south of the border closed higher Friday, posting a solid week of gains, after Federal Reserve Chair Janet Yellen said that an interest rate hike in the next few months would probably be appropriate.
The Dow Jones Industrials gained 44.93 points to 17,873.22. Goldman Sachs and UnitedHealth boosted the Dow the most Friday.
The S&P 500 strengthened 8.88 points to 2,098.98. Telecoms and financials led S&P 500 advancers in afternoon trade, while energy lagged.
The NASDAQ Composite added 31.74 points to 4,933.50, helped by gains in shares of Alphabet, Microsoft and Comcast. Apple traded slightly lower.
Shortly before the closing bell, the Dow and S&P were within 2% of their 52-week intraday highs and tracking for weekly gains of more than 2%, their best week since March. The NASDAQ was about 6% below that 52-week intraday high and on pace for a weekly gain of more than 3%, its best week since February.
Markets in the U.S. will be shuttered Monday for the Memorial Day holiday.
Yellen was in conversation with Harvard professor Gregory Mankiw as early afternoon trade went on, as she received the university's Radcliffe Medal.
In economic news, the University of Michigan said consumer sentiment was 94.7 in May, below expectations but up from 89 in April.
Elsewhere, the second revision to U.S. first-quarter Gross Domestic Product came in at 0.8%, a touch below expectations although up from the advance read.
Prices for the 10-year Treasury settled, raising yields to 1.85% from Thursday’s 1.83%. Treasury prices and yields move in opposite directions.
Oil prices subsided eight cents a barrel to $49.40 U.S.
Gold prices were off $9.60 to $1,210.20 U.S. an ounce.
