Canada Stocks: Toronto market closes up at 2-month high as oil prices rally
11/08/2022 22:25
(New throughout, updates prices, market activity and comments)
* TSX ends up 105.94 points, or 0.5%, at 19,991.88
* Energy sector climbs 3.9%; oil settles 2.6% higher
* Element Fleet jumps 10.3% after earnings beat
* Financials gain 0.7%
By Fergal Smith
Aug 11 (Reuters) - Canada's main stock index rose on
Thursday, closing at a the highest in two months as higher oil
prices bolstered energy shares, but an uncertain economic
environment threw doubt on whether it would be plain sailing
ahead for the commodity-linked market.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 105.94 points, or 0.5%, at 19,991.88, adding
to this week's rally and posting its highest closing level since
June 10.
"We have had a pretty good week ... we have seen a lot of
the commodities hang in," said Michael Sprung, president at
Sprung Investment Management.
"I am not sure if this is going to be a long-term trend or
not. If anything, I think the fears of inflation and possible
recession are likely to resurface again."
Canada's inverted yield curve signals the Bank of Canada may
raise interest rates to a level that triggers a recession,
placing the central bank in a tough spot as it aims to tame high
inflation and engineer a "soft landing" for the economy.
urn:newsml:reuters.com:*:nL1N2ZM1PI
The energy sector climbed 3.9%, as crude oil futures CLc1
settled 2.6% higher at $94.34 a barrel after the International
Energy Agency raised its oil demand growth forecast for this
year. urn:newsml:reuters.com:*:nL1N2ZN03U
Suncor Energy SU.TO added 3.3% as it considers spinning
off its Petro-Canada gas business that accounts for 13% of
Canada's retail fuel market. urn:newsml:reuters.com:*:nL1N2Z933R
Energy accounts for nearly 19% of the TSX's market
capitalization.
Among other companies that stood out was Element Fleet
Management Corp EFN.TO . Shares of the fleet management company
jumped 10.3% after it beat earnings estimates, while
manufacturing company Linamar Corp LNR.TO ended 10.6% higher.
urn:newsml:reuters.com:*:nASA03L0K
Heavily-weighted financials rose 0.7% and consumer staples
were up 1.7%.
(Reporting by Fergal Smith; Additional reporting by Johann M
Cherian in Bengaluru; Editing by Shinjini Ganguli and David
Gregorio)
((Yohann.MCherian@thomsonreuters.com;))