Canada Stocks: Toronto stocks notch all-time high as commodity stocks rise

Canada Goose Holdings

21/10/2024 16:06

(Updated at 10:08 a.m. ET/ 1408 GMT)
    By Nikhil Sharma
       Oct 21 (Reuters) - Canada's main stock index edged up to
touch a record high on Monday due to gains in mining and energy
shares, as investors anticipated an oversized Bank of Canada's
interest rate cut later this week.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was up 41.99 points, or 0.17%, at 24,864.53, following
record closing highs in three of the last four trading sessions.
    The materials sector  .GSPTTMT  added 1.3% to lead the
sectoral gains as gold prices hit a record high on U.S. election
uncertainties, Middle East tensions, and expectations of central
banks' rate cuts, while silver hit a near 12-year peak.  GOL/ 
    Canada's heavyweight energy sector  .SPTTEN  rose 0.4% as
oil prices rebounded after last week's more than 7% decline.
 O/R 
    In contrast, the real estate  .GSPTTRE  and healthcare
 .GSPTTHC  sector limited overall gains and fell 0.6% and 0.2%
respectively.
    "It's (TSX) modestly positive on the day, but it's certainly
not a banner day by any means," said Josh Sheluk, portfolio
manager at Verecan Capital Management.
    "But generally slightly positive sentiment perhaps
reflecting beliefs or dreams of an outsized rate cut from the
Bank of Canada at their next meeting."
    The Bank of Canada is widely expected to cut its policy
rates by 50-basis point on Wednesday, which would be the first
super-sized reduction in 15 years outside of the pandemic era.
    While the top bank has already offered three consecutive
25-basis-point cuts, the bets for a half point reduction spiked
after last week's cooler-than-expected inflation data.
    Meanwhile, as the U.S. presidential elections on Nov. 5
approach, global markets are closely monitoring the event, with
betting markets favoring Republican candidate Donald Trump.
    Among individual stocks, shares of red parka maker Canada
Goose  GOOS.TO  fell 5.3% after a report said that Goldman Sachs
downgraded the stock to "sell" from "neutral".

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay
Kishore)
 ((Nikhil.Sharma@thomsonreuters.com))