Canada Stocks: TSX closes above 20,000 for first time in two months
12/08/2022 21:38
(Adds investor quotes and details throughout; updates prices)
* TSX ends up 187.93 points, or 0.9%, at 20,179.81
* For the week, the index advances 2.9%
* Rogers and Shaw finalize deal to sell Freedom Mobile
* Materials group adds 2.1% as gold rallies
By Fergal Smith
Aug 12 (Reuters) - Canada's main stock index rose on Friday,
extending the week's gains, as investors cheered signs of easing
inflation pressures and two major telecom companies made headway
with their merger deal.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 187.93 points, or 0.9%, at 20,179.81, closing
above the 20,000 threshold for the first time since June 10.
For the week, the index was up 2.9%, getting a bump from
softer-than-expected inflation data in the United States.
"It looks like inflation pressures are ebbing a little bit,"
said Elvis Picardo, portfolio manager at Luft Financial, iA
Private Wealth.
"They were so elevated to begin with that any hint of a
reversal or a slight softening in inflation pressures is being
taken as a positive."
Investors have worried that central banks around the world
will be unable to cool price pressures without triggering
downturns. urn:newsml:reuters.com:*:nL1N2ZM1PI
Canada's inflation report for July is due on Tuesday, which
could offer clues on the Bank of Canada policy outlook.
"The market is worried that the Bank of Canada will
over-tighten interest rates and push the economy into a
recession," said Angelo Kourkafas, investment strategist at
Edward Jones Investments.
The materials group, which includes precious and base metals
miners and fertilizer companies, led broadbased gains. It added
2.1% as a drop in U.S. Treasury yields helped push the price of
gold XAU= up to $1,800 per ounce. urn:newsml:reuters.com:*:nL4N2ZO302
Rogers Communications Inc RCIb.TO and Shaw Communications
Inc SJRb.TO finalised an agreement to sell Freedom Mobile to
Videotron, a unit of Quebecor Inc QBRb.TO , in a C$2.85 billion
($2.23 billion) deal. urn:newsml:reuters.com:*:nL4N2ZO22R
The spinoff comes at a time when Canada's antitrust agency
has kept the Rogers' C$20 billion acquisition of Shaw on hold
since May, citing competition concerns.
Rogers rose 0.5%, Shaw gained 1.6% and Quebecor ended 3.2%
higher.
(Reporting by Fergal Smith; Additional reporting by Johann M
Cherian in Bengaluru; Editing by Anil D'Silva and Grant McCool)
((Yohann.MCherian@thomsonreuters.com;))