TSX posts biggest gain in five weeks as rate hike bets recede

TORONTO, - Canada's main stock index rose on Friday by the most in five weeks, led by gains for Aritzia and metal mining shares, as weaker-than-expected domestic jobs data reduced expectations for Bank of Canada interest rate hikes.

The Toronto Stock Exchange's S&P/TSX Composite Index ended up 519.24 points, or 1.48%, at 35,664.62, marking its highest closing level in two weeks and its biggest advance since September 3.

* For the week, the index added 0.46% after two straight weeks of declines.

* "Markets didn't want to end three weeks down in a row." said Ben Jang, a portfolio manager at Nicola Wealth. "It's the same story - bad news for the economy, good news for valuations."

* Canada's economy shed 68,300 jobs in September and the unemployment rate edged up to 6.5%. Analysts had forecast a jobs gain of 9,200.

* "The market has been quite hawkish and pricing in hikes which now, with such a weak job number, likely means a pause in that process," Jang said.

* Investors see a 25% chance the BoC would hike at the October 28 policy announcement, down from 40% before the jobs report.

* Lower interest rates increase the value to investors of the cash flows companies are expected to earn.

* The materials sector, which includes metal mining shares, rose 2.81% as bargain buying emerged for gold after bullion touched a two-month low earlier this week.

* Energy was up 1.07% as oil recouped its earlier declines. US crude oil futures settled 0.4% higher at $91.85 a barrel.

* Shares of Aritzia surged more than 20% after the apparel retailer topped analyst expectations for second-quarter revenue and profit. That helped lift the consumer discretionary sector by 2.66%.

* Technology rose 2.88% and heavily weighted financials ended 1.21% higher.

* Communication services stocks were a drag, with Cogeco Communications falling 7.11% and BCE down 5.47%.

* US and European telecom stocks also tumbled after SpaceX's acquisition of low-band spectrum heightened concerns over growing competition from satellite-based mobile services.

This article was generated from an automated news agency feed without modifications to text.

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