TSX hits record high after GDP data, set for monthly gain
Updated at 10:14 a.m. ET/ 1514 GMT
By Nikhil Sharma
Nov 29 (Reuters) -Canada's main stock index hit a record high on Friday after data showed theeconomy grew at an annualized rate of 1% in the third quarter, raisingexpectations for a larger interest-rate cut by the Bank of Canada next month.
The S&P/TSX composite index .GSPTSE was up 83.72 points, or 0.33%, at 25,627.24 and was on track to hit its fifth straight monthly gain.
Datashowed third-quarter gross domestic product growth was less than the BoC's projection of 1.5%.
The GDP came in belowexpectations at 0.1% on a monthly basis.
"It's showing a weaker than expected economy for Canada, which is not surprising for anybody living here," said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James.
"We're seeing a little bit of a positive bounce here" that reflects "there will be future rate cuts coming in Canada and perhaps even a larger one."
Traders see a 43.5% chance of a 50-basis-point cut at the December policy meeting, up from 30.7% seen earlier. 0#BOCWATCH
The central bank reduced borrowing costs by 125 basis points to 3.75% in its past four meetings in a bid to boost growth,after inflation cooled to reach its targetrange.
The TSX indexwas on track to hit itsbiggest monthly rise in a year, if gains hold, partly aided by the globalstock market rally that followed Donald Trump's election victory.
The benchmark index wasset to end in green for the week, despiteinitial investor concerns about Trump's pledge to impose a 25% tariff on imports from Canada and Mexico.
Among sectors, the materials sector .GSPTTMT rose 0.6% as gold prices gained due to a weaker greenback and geopolitical woes. GOL/
EnergyFuels <EFR.TO> led the indexwith a 4.6% gain.
Trading volumeswere lighter than usual as the U.S. markets were closed forhalf a day.
Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas
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