Canada Stocks: TSX jumps to record high as energy leads broadbased gains
17/03/2022 20:53
* TSX ends up 302.39 points, or 1.41%, at 21,771.22
* Ten of 11 major sectors end higher
* Energy rises 3.5%; oil settles 8.4% higher
* Technology gains 2.7%
By Fergal Smith
TORONTO, March 17 (Reuters) - Canada's main stock index rose
on Thursday to a record high as investors took in stride the
start of the Federal Reserve's tightening cycle, with the energy
and technology sectors among the biggest advancers in a
broadbased rally.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 302.39 points, or 1.41%, at 21,771.22,
eclipsing the previous peak it notched in November last year.
Ten of 11 major sectors ended higher.
U.S. stocks also climbed as investors tracked Russia-Ukraine
peace talks and considered the path laid out on Wednesday by the
Federal Reserve for policy tightening as the central bank hiked
interest rates for the first time since 2018. urn:newsml:reuters.com:*:nL2N2VK28W
"Once again, as the Fed has been doing for years, they are
doing everything they can to keep the market calm," said Lorne
Steinberg, president, Lorne Steinberg Wealth Management Inc.
"Despite the fact people are focused on inflation and wage
inflation. Offsetting that is a very strong jobs market, which
should underpin the economy for the rest of the year," Steinberg
said.
Canada's unemployment rate has dropped below its
pre-pandemic level as businesses reopened from strict Omicron
restrictions. urn:newsml:reuters.com:*:nL2N2VE14R
The TSX has outperformed many global benchmarks this year,
with investors embracing the commodity-linked stock market to
protect their portfolios from the impact of supply shortages and
soaring inflation. urn:newsml:reuters.com:*:nL3N2VB4MI
The energy group rose 3.5% as oil rebounded from several
days of losses to settle 8.4% higher at $102.98 a barrel, with a
renewed focus on supply shortages in coming weeks due to
sanctions on Russia. urn:newsml:reuters.com:*:nL2N2VK057
The materials group, which includes precious and base metals
miners and fertilizer companies, added 2.6% as gold XAU= and
copper HGc1 prices moved higher.
Technology, which has been pressured this year by the
prospect of higher interest rates, was up 2.7%. It was helped by
a 15.9% gain for Lightspeed Commerce Inc LSPD.TO .
(Reporting by Fergal Smith; Additional reporting by Amal S in
Bengaluru
Editing by Alistair Bell)
((fergal.smith@thomsonreuters.com; +1 647 480 7446;))