Canada Stocks: TSX notches biggest weekly gain in 11 months as oil surges
04/02/2022 22:00
(Adds investor comments, market details, updates prices)
* TSX ends up 177.84 points, or 0.8%, at 21,271.85
* For the week, the index gains 2.6%
* Energy rises 0.6%, with oil settling 2.3% higher
* Shopify rallies 8.8%; technology ends up 2.7%
By Fergal Smith
TORONTO, Feb 4 (Reuters) - Canada's main stock index rose on
Friday, capping a strong week as a seven-year high for oil
prices bolstered the index's attractiveness to foreign
investors.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 177.84 points, or 0.8%, at 21,271.85. For the
week, it climbed 2.6%, its biggest advance since March last
year.
"Foreign investors when they see oil prices going up it
brings money into the Canadian market," said Lorne Steinberg,
president of Lorne Steinberg Wealth Management Inc.
The energy sector touched its highest intraday level since
August 2018 before closing 0.6% higher, while U.S. crude oil
futures CLc1 settled up 2.3% at $92.31 a barrel as frigid U.S.
weather and ongoing political turmoil among major world
producers fueled worries about supply disruptions.
Energy and financials combined account for nearly half the
value of the Toronto market. Financials also moved higher on
Friday, gaining 0.5%.
"Canadian bank stocks still look cheap to us," Steinberg
said. "Canadian credit is in fantastic shape, loan losses are
minimal, the housing market remains strong."
Wall Street indexes also rallied as Amazon.com Inc's
AMZN.O positive numbers boosted sentiment and U.S. jobs data
pointed to underlying strength in the economy. urn:newsml:reuters.com:*:nL1N2UF1TT
In contrast, the Canadian economy lost more jobs than
expected in January as the Omicron-driven COVID-19 wave peaked,
but analysts expect a quick rebound in coming months.
urn:newsml:reuters.com:*:nL1N2UF11D
Among stocks with the biggest gains on the Toronto market
was e-commerce company Shopify Inc SHOP.TO . It rallied 8.8%,
helping the technology group to a 2.7% advance.
(Reporting by Fergal Smith in Toronto
Additional reporting by Amal S in Bengaluru
Editing by Matthew Lewis)
((fergal.smith@thomsonreuters.com; +1 647 480 7446;))