Wednesday, July 6

Toronto index gains on energy, tech boost

Article content

Canada’s main stock index rose on Monday as energy stocks rallied on the back of strength in oil prices, with investor sentiment getting a boost globally from signs of a let-up in China’s crackdown on its technology sector.

At 9:40 am ET (13:40 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 100.62 points, or 0.48%, at 20,891.35.

The movement mirrored an upbeat mood on Wall Street, where US-listed shares of Chinese technology companies led the gains after a report that Beijing was concluding probes into ride-hailing giant Didi Global Inc and two other firms and preparing to allow their apps back on domestic app stores.

Article content

Tracking gains on the tech-heavy Nasdaq index, the Canadian technology sector rose 1.0%.

The energy sector climbed 1.0% as US crude prices were up 0.7% a barrel and Brent crude added 0.7%.

The financials sector gained 0.6%, while the industrials sector rose 0.5%.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.1% as a slight pullback in the dollar lifted gold prices.

In company news, Air Canada gained 0.8% after a top regional executive said on Saturday the airline was expecting demand for flights between Canada and the Asia-Pacific to recover to near pre-pandemic levels by December next year.

While equities globally have taken a hit from surging inflation and the expected tightening of policy by central banks, the TSX index has fared better than peers thanks to its heavy exposure to rising commodity prices.

The focus this week will be on US consumer inflation data slated for release on Friday, as it could bolster or dash hopes of a pause in the Federal Reserve’s aggressive-tightening plan.

(Reporting by Amal S in Bengaluru; Editing by Aditya Soni)