Technology and consumer staples rise TSX

June 28 (Reuters) – Canada’s main stock index rose on Wednesday, with the technology sector leading gains, while shares in Alimentation Couche-Tard rallied after the supermarket operator beat expectations for a fourth-quarter profit.

As of 10:04 am ET (1404 GMT), the Toronto Stock Exchange’s S&P/TSX Composite Index (.GSPTSE) was up 39.34 points, or 0.2%, to 19,772.43.

Alimentation Couche-Tard (ATD.TO) added 3.3% and added Consumer Staples (.GSPTTCS) 0.7%.

Investors also listened to comments from Federal Reserve Chair Jerome Powell and European Central Bank (ECB) President Christine Lagarde at a panel hosted by the ECB in Portugal.

Canada’s technology sector (.SPTTTK) gained 1.1% for the second straight day after data on Tuesday showed domestic inflation slowed to 3.4% in May.

“We are seeing inflation decelerating somewhat, which gives some optimism that central banks are getting closer to a pause,” said Greg Taylor, chief investment officer at Purpose Investments.

“People are looking for signs of growth that’s outside of cyclical values.”

Canadian bond yields also fell.

The commodities sector (.GSPTTMT), home to Canada’s largest miners, fell 0.1% as gold prices declined on the back of a firmer dollar.

Energy stocks (.SPTTEN) slipped 0.3%, trailing lower oil prices.

The TSX is on track to post a quarterly decline after posting two consecutive quarters of gains weighed down by volatility in commodity prices and rising global interest rates.

Canopy Growth (WEED.TO) tumbled 6.5% after KPMG resigned as the cannabis producer’s accountant.

Postmedia Network Canada Corp (PNCa.TO) rose 8.9% after the news media company confirmed it is in non-binding talks with Nordstar Capital over a potential merger of some operating assets of the Toronto Star and Metroland newspapers.

Reporting by Shashwat Chauhan in Bengaluru; Edited by Shilpi Majumdar

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