Tuesday, July 5

Toronto index rises on energy boost; set for weekly gains

Article content

Canada’s main stock index rose on Friday as energy stocks gained and global sentiment improved after China unveiled measures to support the country’s economic growth.

At 9:42 am ET (13:42 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 140.32 points, or 0.7%, at 20,322.24.

China cut its five-year loan prime rate – which influences the pricing of mortgages – by 15 basis points on Friday, a sharper reduction than expected. The cut, the second this year, aims to prop up an economy crimped by fresh COVID-19 lockdowns.

Article content

“The key questions for today then are whether bulls can mount enough support to keep the markets up through the day and if the bears take the day off today, do they come back again next week?,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.

“In other words, a bounce appears to have started but it’s unclear if it’s sustainable or not.”

The energy sector climbed 1.3% as oil prices held steady and on course for little change on the week as a planned European ban on Russian oil balanced out investor concerns about weakening economic growth hitting demand.

The financials sector gained 0.9%, while the industrials sector rose 0.5%.

The benchmark index has gained 1% so far this week and was set to snap a seven-week losing streak as gains in resource-linked shares helped cushion the blow from the recent rout in global equities.

The materials sector, which includes precious and base metals miners and fertilizer companies, rose 0.2% as gold prices rose to a one-week high as dollar weakened. (Reporting by Amal S in Bengaluru; Editing by Sriraj Kalluvila)