TORONTO, June 12 Reuters Canadian utility and real estate stocks are likely to be among the biggest beneficiaries of the Bank of Canada39;s move to begin cutting interest rates, while the prospect of increased loan demand could help bank shares, investors say.

The BoC last Wednesday became the first G7 central bank to ease monetary policy, lowering its benchmark rate by 25 basis points to 4.75. Roughly 150 basis points of additional cuts are priced into the bond market over the next couple of years.

Interest ratesensitive sectors such as utilities, real estate investment trusts, or REITs, and financials account for 35 of the weighting on Canada39;s main stock index, the SPTSX Composite.

They39;ve started cutting rates, there39;s more to come, said Joseph Abramson, cochief investment officer at Northland Wealth Management. The two big sector plays on that are REITs and utilities … they39;re both income plays and they also have a lot of debt.

REITs own incomeproducing real estate, while utilities include highdividend paying pipeline companies such as Enbridge Inc and TC Energy Corp.

The defensive parts of the market think REITs, utilities and telecom those areas have been hit particularly hard as rates have gone up, said Mike Archibald, a portfolio manager at AGF Investments. If rates go as consensus is thinking … those sectors I think would start to play a little bit of catch up.

Canada39;s economy is particularly sensitive to the level of borrowing costs….