Canada Stocks: TSX climbs for second straight day, Nuvei hits 8-month high

Nuvei

09/03/2023 15:40

(Adds comment; updates prices, details)

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      Nuvei jumps on rating upgrade
    

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      Linamar slumps to TSX bottom on Q4 earnings miss
    

  
    By Johann M  Cherian
       March 9 (Reuters) - Canada's benchmark stock index rose
for the second straight day on Thursday, tracking strength in
its U.S. peers, while payment services provider Nuvei surging to
its eight-month high also aided gains.
    At 10:14 a.m. ET (1514 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 26.67 points, or 0.13%,
at 20,373.2.
    Across the border, U.S. stock indexes gained after a sharp
rise in weekly jobless claims eased some rate-hike concerns
ahead of a key jobs report on Friday.  .N 
    "The TSX is rallying because we finally got one job number
that shows the impact of interest rates on the economy and maybe
things are starting to slow in the U.S.," said Barry Schwartz,
portfolio manager at Baskin Financial Services.
    "And the fact that the Bank of Canada did not raise interest
rates also makes Canadian stock valuations more attractive."
    On Wednesday, the BoC kept its benchmark rate on hold at
4.50%, becoming the first major central bank to suspend its
monetary tightening campaign in the face of an anticipated
easing of high inflation.
    The energy sector  .SPTTEN  rose 1.7%, tracking crude prices
that gained on supply disruptions in France. Materials
 .GSPTTMT  rose 0.4%, tracking higher metals prices.  O/R 
[MET/L  GOL/ 
    The rate-sensitive financials  .SPTTFS  fell 0.7%.
    Thus far in the year, the TSX has recuperated more than half
of its losses in 2022. But in recent weeks, fears of further
interest rate hikes by the Fed and a mixed bag of economic data
from China marred investor sentiment.
    Among individual moves, Linamar Corp  LNR.TO  slumped 8.8%
after the auto parts manufacturer missed quarterly profit
estimates, prompting a rating downgrade by Veritas Research.
    Nuvei Corp  NVEI.TO  led gains on the TSX with its 8.1%
surge after Credit Suisse upgraded the stock to "outperform"
from "neutral". The tech sector  .GSPTTK , housing the stock,
jumped 2.1%.

 (Reporting by Johann M Cherian in Bengaluru; Editing by Shilpi
Majumdar)
 ((johann.mcherian@thomsonreuters.com;))