Financial and energy stocks led the TSX to a higher close Wednesday. The S&P/TSX composite index rose 63.70 points to end the day at 7,801.09.

Before markets opened, Statistics Canada reported relatively benign inflation news. October’s annual inflation rate plunged to 1.6%, from 2.2% in September, while the “core” inflation rate edged up slightly to 1.8% from 1.7% in September.

The heavily-weighted financials index was up 1.2% as all six of the big banks saw their shares rise.

Royal Bank gained $1.08 to $64.65; Bank of Montreal rose $1.10 to $51.40.

The energy, gold index, and utilities indices also rose 1.2%.

The energy sector received a boost when Penn West Petroleum said its third-quarter earnings more than doubled because of higher gas prices and rising production.

Penn West shares rose 43¢ to $48.42, while EnCana shares gained 72¢ to $46.36.

Royal Group Technologies shares rose 71¢ to $10.25. The company reported a wider fourth-quarter loss on write-downs and appointed two new independent directors to its board. Royal’s CEO announced earlier in the week that he would resign next month.

Atlantic Atlantis shares were up 24¢ at $23.14. The entertainment company reported that its hit CSI shows would generate $1 billion in revenue for the company by the end of 2008.

The TSX gold index slipped 0.2%, as the price of gold bullion slipped $2.70 to US$394.90 US an ounce.

Onex shares rose 56¢ to $15.37 after it said it was discussing some kind of financial transaction between its Loews Cineplex subsidiary and AMC theatres.

Market momentum was positive as 641 issues advanced and 591 declined. TSX volume was robust as 301 million shares changed hands.


The junior S&P/TSX Venture composite index slipped 8.52 points to finish at 1,625.86.

In New York, stocks rose after four straight losing sessions as a promising forecast from General Electric lured investors back after concerns that the slumping U.S. dollar would hurt U.S. investments.

The Dow Jones industrial average closed up 66.3 points at 9,690.46. The S&P 500 rose 8.29 points to 1,042.44. The tech-heavy Nasdaq composite index gained 17.90 points to 1,899.65.

The Canadian dollar slipped 0.31 of a cent to US76.63¢.