CANADA STOCKS-TSX notches 1-month high as resource shares climb - - 2 minutes read

(Adds strategist quotes and details throughout, updates prices)
* TSX ends up 88.47 points, or 0.4%, at 21,581.70
* Posts highest closing level since Feb. 9
* Energy gains 1.7%; materials adds 2.3%
* Technology declines 2.1%
TORONTO, March 10 (Reuters) - Canada’s main stock index rose on Thursday, adding to recent outperformance against Wall Street, as gains for energy and gold mining shares offset losses for the technology sector.
The Toronto Stock Exchange’s SP/TSX composite index ended up 88.47 points, or 0.4%, at 21,581.70, its highest closing level since Feb. 9.
In contrast, Wall Street resumed its sell-off as inflation hit a four-decade high, cementing expectations that the U.S. Federal Reserve would hike key interest rates at the conclusion of next week’s monetary policy meeting to prevent the economy from overheating.
Soaring inflation and the ongoing Russia-Ukraine crisis have roiled global markets in recent weeks, although the impact on the commodity-heavy TSX has been mitigated by a rally in crude prices.
“It’s the combination that it’s not yet a recession and we have commodity-driven inflation that I think has accounted for the TSX outperformance,” said Kurt Reiman, senior investment strategist for North America, BlackRock.
“Canada is a large exporter of many of the same exports that you see coming out of Russia and Ukraine.”
The TSX has gained 1.7% since the start of 2021, compared with a 10.6% decline for U.S. benchmark the SP 500.
The energy sector rose 1.7% even as oil prices settled 2.5% lower at $106.02 a barrel, with some traders saying supply disruption concerns were overdone.
The materials group, which includes precious and base metals miners and fertilizer companies, added 2.3%, but technology shares were unable to build on the pervious day’s rally, losing 2.1%.
Heavily weighted financials ended 0.1% lower. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; editing by Jonathan Oatis)

Source: Reuters

Powered by