Toronto market wins as investors embrace energy stocks

  • The TSX ends up 32.54 points, or 0.15%, at 21,072.02
  • Energy climbs by 3%; oil settles 2.1% higher
  • 0.8% financial advance
  • Technology extends this week’s decline

TORONTO, Jan.6 (Reuters) – The main Canadian stock index rose on Thursday, rebounding from its two-week low the day before, as optimism that the global economic recovery continued to support the outlook for resources and other stocks cyclical.

The Toronto Stock Exchange‘s S & P / TSX Composite Index (.GSPTSE) ended up 32.54 points, or 0.15%, at 21,072.02, after Wednesday’s close was the lowest since December 21.

The gain came as data showed Canadian exports were at an all-time high, helped by the seventh consecutive monthly increase in energy exports. Read more

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“I am optimistic about the resources … global growth is still strong,” said Steve Palmer, founding partner and chief investment officer at AlphaNorth Asset Management.

“If the resources are strong, it’s a good sign that the Canadian market will perform.

Energy, financials and other cyclical sectors, which tend to benefit particularly from a pickup in economic growth, account for over 70% of the Toronto market.

Energy advanced 3%, helped by higher oil prices, while financials finished up 0.8%.

U.S. crude oil futures were up 2.1% to $ 79.46 a barrel, but gold fell more than 1% after minutes from the latest Federal Reserve meeting Wednesday signaled the possibility of faster-than-expected US interest rate hikes.

The materials group, which includes precious and base metal mining companies and fertilizer companies, lost 2.7%, as technology extended this week’s decline, falling 1.2% .

Some of the tech equity sale this week could be tied for tax planning purposes.

“People waited until the capital gains deferred until 2022, so they refused to sell the winners,” Palmer said.

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Reporting by Fergal Smith; Additional reporting by Amal S in Bangalore; Editing by Jonathan Oatis

Our Standards: Thomson Reuters Trust Principles.

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