Canadian Stocks Finish Lackluster Session Modestly Higher

(RTTNews) - Following the notable advance seen in the previous session, Canadian stocks showed a lack of direction over the course of the trading day on Friday.

The benchmark S&P/TSX Composite Index bounced back and forth across the unchanged line before closing up 54.50 points or 0.3 percent at 20,622.34, its best closing level in over a month.

The volatility on the day came as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy meeting next week.

While the Fed is widely expected to leave interest rates unchanged next week, recent U.S. economic data has led to uncertainty about future rate hikes.

Materials stocks showed a strong move to the upside on the day, driving the S&P/TSX Capped Materials Index up by 1.4 percent. The strength in the sector came amid increases in the prices of gold and silver.

Most of the other major sectors showed only modest moves on the day, contributing to the lackluster performance by the broader market.

In Canadian economic news, Statistics Canada released a report showing Canadian manufacturing sales jumped by 1.6 percent in July after tumbling by 2.0 percent in June.

Higher sales of food products, petroleum and coal products and transportation equipment led the rebound, while sales of paper and plastics and rubber products decreased the most.