Tuesday, November 29

Toronto market rides global wave to notch 3-month high

Article content

TORONTO — Canada’s main stock index rose on Tuesday to its highest closing level in more than three months as higher commodity prices bolstered resource shares and investors picked out areas of the market that could best weather an expected economic slowdown.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 242.88 points, or 1.2%, at 20,220.01, its highest closing level since Aug. 18.

Article content

“All markets have had a good rally here. I think the TSX is riding that wave,” said Lorne Steinberg, president, Lorne Steinberg Wealth Management Inc.

Article content

US stocks also rose as a sales forecast by Best Buy dampened concerns high inflation would lead to a dismal holiday shopping season.

“Investors are looking for value and what will do well if we do get a slowdown (in the economy),” Steinberg said. “I don’t think anyone is expecting a nasty recession and even if there is ongoing weakness in housing, which we anticipate, the bank’s mortgage books should be pretty well insulated.”

Higher interest rates are starting to slow the Canadian economy, Bank of Canada Senior Deputy Governor Carolyn Rogers said, putting pressure on households with elevated debt and people who recently bought a home with a variable-rate mortgage.

Financials, which include banks and insurance companies and are the most heavily weighted sector on the Toronto market, rose 0.9%. The sector is up 14.3% from last month’s low.

Energy advanced 2.4% as the price of oil settled 1.1% higher at $80.95 a barrel, while the materials group, which includes precious and base metals miners and fertilizer companies, added 3.5%.

It was led by a gain of 9.8% for the shares of Eldorado Gold Corp, posting its highest closing level since June 10. (Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Sandra Maler)


Leave a Reply

Your email address will not be published. Required fields are marked *