Canada Stocks: Energy sector lifts Toronto stocks to 11-week closing high

iA

11/11/2022 21:54

(Adds market close data, fresh quote.)
    By Shashwat Chauhan and Divya Rajagopal
       Nov 11 (Reuters) - Canada's resources-heavy stock index
extended gains to finish at an 11-week closing high on Friday,
as commodity prices rose after top consumer China eased some
COVID-19 curbs.
    The benchmark Toronto Stock Exchange's S&P/TSX composite
index  .GSPTSE  closed up 121.15 points, or 0.61%, at 20,111.51
points, the highest close since Aug. 25.
    The index extended gains after logging its best session
since April 2020 on Thursday, when data showing cooling U.S.
inflation tempered bets of a super-sized interest hike from the
Federal Reserve next month. 
    The index rose 5.7% for the week.
    "It is encouraging to see follow-through buying on a day
like today, as you would think most traders might be away due to
the national (Remembrance Day) holiday," said Elvis Picardo,
portfolio manager at Luft Financial. 
    However Picardo said it was unclear whether the rising trend
had power to last through the end of the year. "So we have to
see whether buying continues in this pace for next six weeks,”
he said.  
    The energy sector  .SPTTEN  led gains on Friday, climbing
2.2% as oil prices jumped by more than 3% after top consumer
China eased some of its strict COVID curbs, raising hopes for
improved economic activity and demand.  O/R 
    Cannabis stocks jumped between 2% and 5%, pushing the
broader healthcare index  .GSPTTHC  up 4%.
    "I think the only thing that could derail this type of rally
would be if someone at the Federal Reserve were to say, 'We're
still going to continue to raise rates aggressively even though
inflation dropped down,'" said Allan Small, senior investment
advisor at Allan Small Financial Group with iA Private Wealth.
    "If you ask any of us that invest money for a living, I
would say if we can get by today with minimal loss, I think
that's a win."
    Meanwhile, some Canadian employers say they plan to hold on
to their workers even if the economy slips into a recession,
rather than risk not be able to rehire later.
    Altus Group Limited  AIF.TO  soared 8.7% after reporting
strong third-quarter results, while Algonquin Power & Utilities
 AQN.TO  closed at 19% down on a wider third-quarter loss.
    Thomson Reuters Corp  TRI.TO  closed down 0.9 %. The company
said it would buy U.S.-based tax automation software and
services provider SurePrep LLC for $500 million in cash.
 (Reporting by Shashwat Chauhan in Bengaluru; Editing by Shounak
Dasgupta, Devika Syamnath and Cynthia Osterman)
 ((Shashwat.Chauhan@thomsonreuters.com))