The S&P/TSX Composite Index in Canada saw a modest increase as investors prepared for the Federal Reserve’s first rate decision of the year. In Tuesday’s trading, the index rose by 24.21 points, or 0.1%, to reach 21224.34. However, manufacturing and consumer-services stocks experienced broad declines, while the finance sector remained one of the few areas in positive territory.
Toronto’s blue-chip S&P/TSX 60 index also saw a slight increase of 0.9 point, reaching 1279.66.
The Federal Reserve is set to begin its two-day policy meeting on Tuesday, although it is widely expected that there will be no change in interest rates.
One notable downturn in the market was seen in shares of snowmobile and watercraft manufacturer BRP, which fell by 4.6% to 85.84 Canadian dollars.
Other market movements included Metro, which dropped by 1.6% to C$70.09 after issuing a warning about higher costs for the fiscal year. Despite this, the company reported a rise in first-quarter net income to 228.5 million Canadian dollars ($170.3 million), up from C$231.1 million the previous year, driven by a 6.5% increase in sales to C$4.97 billion.
Exro Technologies also experienced a decline, with its stock dropping by 7.2% to C$1.03. The technology company recently announced its acquisition of SEA Electric for approximately $248 million in stock.
It remains to be seen what impact the Federal Reserve’s rate decision will have on the Canadian stock market.