Canada Stocks: Soft landing hopes help TSX recoup much of weekly loss

Celestica

28/07/2023 21:26

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      TSX ends up 0.7%, at 20,519.37
    

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      Energy adds 2.5%; oil settles 0.6% higher
    

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      Technology advances 2%
    

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      Celestica jumps for a second day
    

  
 (Updated at market close)
    By Fergal Smith
       July 28 (Reuters) - Canada's main stock index clawed
back nearly all of its weekly decline on Friday, helped by gains
for resource and technology shares, as U.S. data showing cooling
inflation bolstered hopes that the economy could avoid a severe
downturn.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 133.9 points, or 0.7%, at 20,519.37. For the
week, it was down 0.1%.
    "There's been a lot of talk about the resilience of the
economy in recent weeks," said Elvis Picardo, a portfolio
manager at Luft Financial, iA Private Wealth. "Given the fact
that inflation seems to be decelerating, I think investors are
definitely in a risk-on mode at the moment. This is pinned on
hopes for a soft landing."
     Wall Street also rose as U.S. annual inflation slowed
considerably in June, likely pushing the Federal Reserve closer
to ending its fastest interest rate hiking cycle since the
1980s.
    Separated data showed Canada's economy grew 0.3% in May but
likely contracted in June.
    "We are seeing that appetite for risk assets in the
performance of some of the energy stocks ... Energy stocks seem
to be coming back to life," Picardo said.
    The Toronto market's energy sector rallied 2.5% as oil
 CLc1  settled 0.6% higher at $80.58 a barrel, while the
materials group, which includes precious and base metals miners
and fertilizer companies, added 1.2%. It was helped by higher
gold  XAU=  and copper  HGc1  prices.
    Technology was also a standout, advancing 2%. Shares of
electronics company Celestica Inc  CLS.TO  jumped 15.2%, its
second day of sharp gains.
    In contrast, shares of TC Energy Corp  TRP.TO  fell 4.3%
after the Keystone pipeline operator said it would spin off its
liquids business to focus on transporting natural gas.

 (Reporting by Fergal Smith in Toronto and Siddarth S in
Bengaluru; Editing by Shweta Agarwal, Shilpi Majumdar and
Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 416 941 8113))