(Updates market action, adds quote, background on BoC rate cut)
TORONTO, July 15 (Reuters) - Canada’s main stock index rose on Wednesday after the Bank of Canada cut interest rates, helping boost shares of financial companies and energy producers.
The benchmark Canadian index is up for a fourth straight session, and the equity market has recently benefited after Greece recently reached a bailout deal.
The Bank of Canada cut its key interest rate by a quarter percentage point to 0.5 percent, saying an unexpected economic contraction throughout the first half of the year had added to excess capacity and put downward pressure on inflation.
“You can’t fault the bank for it, given the numbers are coming in as they are,” said David Cockfield, managing director and portfolio manager at Northland Wealth Management.
He said that the lower Canadian dollar would be a positive for Canadian equity markets.
The Toronto Stock Exchange’s S&P/TSX composite index was up 54.07 points, or 0.37 percent, at 14,653.47. All 10 main sectors on the index were higher.
Financials, the index’s most heavily weighted sector, gained. Toronto Dominion Bank advanced 0.2 percent to C$52.24, and Sun Life Financial Inc climbed 0.2 percent to C$42.45.
Shares of energy producers added 0.3 percent. Suncor Energy Inc was up 0.6 percent at C$35.27, and Enbridge Inc climbed 1.1 percent to C$58.83. (Reporting by John Tilak; Editing by James Dalgleish)
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