TSX creeps higher in volatile session post Yellen speech

Atul Prakash, Reuters

Federal Reserve Chair Janet Yellen is reflected in a specialist's screen on the floor of the New York Stock Exchange. , The Canadian Press

Canada's main stock index edged higher in a seesaw session on Friday, led by financial and industrial stocks as investors raised bets for U.S. interest rate hikes this year after a speech by Federal Reserve Chair Janet Yellen.

For the week, the Toronto Stock Exchange's S&P/TSX composite index fell 0.3 percent. Still, it has rallied 27 percent since hitting a three-year low in January.

Much of the fluctuation in the index on Friday was driven by comments from Fed officials, said John Kinsey, portfolio manager at Caldwell Securities.

The index reached its highest for the day after Yellen failed to lay out a clear roadmap for what the Fed needs to see to raise interest rates in a speech in Jackson Hole, Wyoming.

But most of the gains were pared as Fed Vice Chair Stanley Fischer reinforced the message that the U.S. economy has strengthened.

The odds of a U.S. rate hike as soon as September climbed to 30 percent from 21 percent on Thursday, according to CME Group's FedWatch tool.

The most influential movers on the index included financial and industrial stocks.

Manulife Financial Corp MFC.TO rose 0.9 percent to $17.82, while Royal Bank of Canada RY.TO was up 0.2 percent at $81.54.

Royal Bank of Canada was one of a number of Canadian banks that reported better-than-expected earnings this week.

Expectations for the banks had been set low, said Kinsey.

Still, he likes owning bank stocks for their yield, while he also favors pipeline companies.

The overall financials group firmed 0.2 per cent, while industrials rose 0.5 per cent, including gains for railroad stocks.

Energy stocks advanced 0.3 per cent, helped by higher oil prices.

U.S. crude oil futures settled 31 cents higher at $47.64 a barrel, while Suncor Energy Inc SU.TO rose 0.6 per cent to $36.48.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 9.16 points, or 0.06 per cent, at 14,639.88.

Five of the index's 10 main groups ended higher.

Troubled smartphone maker BlackBerry Ltd BB.TO said it would raise about $605 million by selling convertible debentures to shareholder Fairfax Financial Holdings Ltd FFH.TO and other investors.

BlackBerry's shares rose 0.6 per cent to $10.38.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.4 per cent.

It included a 2.1 per cent drop in the shares of Potash Corporation of Saskatchewan Inc POT.TO to $20.86, while Agrium Inc AGU.TO fell 1.75 per cent to $115.78.