By Adriano Marchese
Toronto stocks were higher in midday trading on Wednesday as the Bank of Canada reduced its interest rate for the first time in more than four years, taking it down by 0.25% to 4.75%.
The move signals to many investors that the country is now on a gradual rate-cut path, and makes Canada the first Group of Seven central bank to provide rate relief after global policymakers increased borrowing costs to fight inflation.
Most sectors were trending higher, led by tech, health tech and utilities. Only process industries and communications stocks were lower in the session.
At midday, Canada's S&P/TSX Composite Index was 0.7% higher at 22120.39 and the blue-chip S&P/TSX 60 rose by 0.6% to 1323.69.
Fortuna Silver Mines shares fell by 13% to 7.04 Canadian dollars ($5.15) after the miner said it is looking to raise up to $172.5 million by way of convertible senior notes offering.
Other market movers:
High Liner Foods plans to launch a share repurchase program to buy back up to 2.1% of its issued and outstanding shares over the course of a one-year period. Shares are up 0.8% to C$13.39.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
06-05-24 1214ET
