CANADA STOCKS-TSX kicks off holiday-shortened week on higher note; Telus drops
(Updated at 10:16 a.m. ET)
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TSX up 0.3%
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Manulife to reinsure $4.3 bln of Canadian Universal Life reserves
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Sun Life Financial names Timothy Deacon as CFO
By Johann M Cherian
March 25 (Reuters) - Canada's main stock index inched up on Monday, boosted by energy and mining firms at the start of a holiday-shortened week, while telecom firm Telus slid following a rating downgrade.
At 10:16 a.m. ET (1416 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 66.71 points, or 0.3%, at 22,050.79.
The energy sector added 1.2% as oil benchmark Brent hovered close to $86 a barrel, supported by supply concerns as hostilities intensified between Russia and Ukraine and in the Middle East.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 1.3%, tracking an uptick in bullion prices as investors bought into the safe haven asset ahead of key economic data due out of the U.S.
"Canada is getting benefit from the fact that we're seeing commodity prices up which is helping resource stocks because otherwise things are pretty quiet today," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
On Friday, the market will parse U.S. February personal consumption expenditures data, the Federal Reserve's preferred inflation gauge, that could test investor euphoria around interest rates being reduced later in the year.
The resources-heavy TSX touched record closing levels in the previous week as investors cheered signs of inflation pressures easing amid the possibilities of averting an economic slowdown.
Among individual stocks, Telus Corp dropped 1.7% after brokerage Scotiabank downgraded the telecom firm to "sector perform" from "sector outperform".
Manulife Financial said that it has agreed to reinsure C$5.8 billion ($4.27 billion) of reserves of Canadian Universal Life block, sending shares of the insurer 0.7% higher.
Sun Life Financial crept 0.1% after the insurer named Timothy Deacon as its chief financial officer, effective April 8.
The financials sector that makes the majority of the TSX added 0.4%.
Canadian markets will be closed on Friday on account of Good Friday. (Reporting by Johann M Cherian in Bengaluru; Editing by Tasim Zahid)
