Toronto stocks at all-time high for third time in a row after energy sector jump (updated)

OceanaGold

23/09/2024 21:42

(Rewrites with fresh quotes and investor comments)
    By Nikhil Sharma and Promit Mukherjee
       Sept 23 (Reuters) - Canada's main stock index breached
its all-time high record, albeit marginally, for a third
consecutive session on Monday as energy stocks boosted returns
after an early bump in crude oil prices due to geopolitical
tensions.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was up 27.34 points, or 0.11%, at 23,894.71, crossing
its all-time peak scaled last week after fed rate cut.
    Crude oil prices had a volatile day with prices first
jumping up on increased Middle east tensions and hopes of strong
U.S. economic growth. But it shed the gains later in the day
after disappointing euro zone business activity and a signs of a
weakening Chinese economy. OIL/ 
        Brent crude futures  LCOc1  for November were down 0.59%
to $74.05 a barrel at 2013 GMT, after touching a peak of $75.17
a barrel earlier in the day.
    "There's still a disconnect between valuations for some of
the energy stocks and expectations for where crude oil might
trade in the next year," said Elvis Picardo, senior portfolio
manager at iA Private Wealth. 
    As a result, any signs that crude might go up bumps up the
energy companies in TSX, he said.
    Canada's energy sector  .SPTTEN , which accounts for around
17.5% weight in the composite index, advanced 0.4% in the day
led by International Petroleum Corp  IPCO.TO  and Birchcliff
Energy Ltd  BIR.TO  both of which were up over 2%. 
    Last week's Federal Reserve's super-sized 50 basis point
rate cut had boosted global markets and stock returns, with the
TSX breaking its closing record since Thursday.
        Traders expect Fed to cut rates by another 75 basis
points by the end of this year and are keeping an eye on several
data prints that could provide clues on monetary policy.
 0#FEDWATCH     
    "Investors will digest the gains so far before the action
starts again in the first or second week of next month with
third quarter earnings," Picardo said.
    Attention will also be on the Fed's preferred inflation
gauge, the core personal consumption expenditures (PCE) and
Canada's gross domestic product numbers for July, both expected
on Friday. 
    The TSX is up 14.1% for the year due to optimism over the
Fed's policy easing and after the Bank of Canada slashed its
policy rates three times this year. The Canadian central bank is
unanimously expected to cut borrowing costs further at its
October meeting.  0#BOCWATCH 

 (Reporting by Nikhil Sharma in Bengaluru and Promit Mukherjee
in Ottawa; Editing by Leroy Leo and Alistair Bell)
 ((Nikhil.Sharma@thomsonreuters.com))