TSX closes higher as energy, loonie strengthen and gold reaches another record

TSX closes higher as energy, loonie strengthen and gold reaches another record

TORONTO — Canada’s main stock index closed in positive territory on Wednesday as oil prices and the loonie strengthened and gold reached another all-time high.

In Toronto, gains were widespread as the S&P/TSX composite index rose by 133.58 points at 16,501.61.

Nine of 11 sectors were in the green, led by energy and financials, leaving just telecommunications and utilities posting modest declines of less than one per cent.

“What we’re starting to see, which feels a little more optimistic, is we’re getting a bit more attention on some of the commodity stocks,” said Greg Taylor, chief investment officer of Purpose Investments.

“For most of this year, it’s been really focused on the large-cap tech stocks and gold. But in the last few days, we’re starting to see a little bit more of that broadening out.”

The September crude contract rose 49 cents to US$42.19 per barrel after the U.S. Energy Information Administration reported a sharp decline in oil inventories during the week to July 31.

That suggests that capital spending cuts in the wake of poor prices earlier this year are working to reduce overproduction and support healthier prices.

Oilsands producer and refinery owner Suncor Energy Inc. rose 62 cents to $22.07 in Toronto while fellow producers Crescent Point Energy Corp. and Cenovus Energy Corp. were ahead by 10 cents to $2.32 and 43 cents to $6.61, respectively.

Meanwhile, the September natural gas contract was down slightly at US$2.19 per mmBTU.

The December gold contract was up US$28.30 at US$2,049.30 an ounce after earlier reaching US$2,070.30 an ounce. The September copper contract was up 2.25 cents at nearly US$2.92 a pound.

The rise in commodities and base metal prices stands to allow Canadian markets to catch up with their American peers which have benefited by having more large technology companies on their rosters, said Taylor.

“Really, the biggest trend everyone’s watching has been this rotation away from some of the large-cap tech stocks towards some cyclicals,” he said.

“If that takes hold, that’s going to be really good for the Canadian market which has underperformed some of the U.S. markets because of the lack of technology stocks.”

Kinross Gold Corp. rose 22 cents to $13.10, Yamana Gold Inc. was up nine cents to $9.04 and Barrick Gold Corp. fell 11 cents to $39.60.

Taylor added that Canada is still a “petro-market” and the rise in oil prices is a good sign.

“The big thing is no one owns these stocks right now, they’ve really fallen out of favour and if we do get a positive momentum in the commodity price and people come back to it, it looks like it could go on a fairly substantial run here.”

The Canadian dollar traded for 75.40 U.S. compared with 74.78 on Tuesday.

Manulife Financial Corp, the most active of the financial stocks, gained 82 cents, or 4.55 per cent, to $18.83 on Wednesday, while Royal Bank of Canada rose by $1.31 or 1.42 per cent to $93.80.

In New York, the Dow Jones industrial average was up 372.84 points at 27,201.31 and the S&P 500 index was up 21.26 points at 3,327.77, just 1.7 per cent below its record.

Meanwhile, the Nasdaq composite was up 57.23 points at 10,998.40 after surpassing 11,000 for the first time earlier in the day.

Taylor said trading volumes on both sides of the border have been low due in part to the season but also because investors are waiting on news.

The jobless statistics out this Friday are widely anticipated, as is an expected agreement in the United States on more stimulus spending to help power through the economic crisis caused by the COVID-19 pandemic.

This report by The Canadian Press was first published Aug. 5, 2020.

Companies in this story: (TSX:SU, TSX:CVE, TSX:MFC, TSX:RY, TSX:CPG, TSX:K, TSX:YRI, TSX:ABX)

The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Pictured left to right: Tyrone McDonald, Fire Chief Jamie Wilkinson, General Manager of Community & Protective Services Paul Edginton, Uwe Kurth (ASFA), City Manager Sue Howard, Deputy Fire Chief Alex Plant, Mayor Tyler Gandam. Photo/ City of Wetaskiwin.
City of Wetaskiwin Fire Services sends gear to firefighters in Paraguay

Former City of Wetaskiwin Fire Services member spearheading this initiative.

Alberta Chief Medical Officer of Health Dr. Deena Hinshaw reported an additional 456 COVID-19 cases over the past 24 hours. (photography by Chris Schwarz/Government of Alberta)
Five new COVID-19 deaths in Central zone, two in Red Deer

Province reports 456 new cases of COVID-19

File photo
Wetaskiwin Crime Reduction Unit recovers valuable stolen property

Property valued at over $50,000 recovered by Wetaskiwin Crime Reduction Unit.

Black Press file photo
Leduc RCMP arrest male for multiple break and enters and theft

34-year-old Michael Gilchrist has been arrested for his involvement in the thefts.

25-year-old Rachelle Okrusko has been missing since Jan. 12, 2021. Photo provided by Wetaskiwin RCMP.
Update: Wetaskiwin RCMP looking for missing woman; Rachelle Okrusko is no longer missing.

25-year-old Rachelle Okrusko has been missing since Jan. 12, 2021.

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

In this March 28, 2017, file photo, a dump truck hauls coal at Contura Energy’s Eagle Butte Mine near Gillette, Wyo. Public opposition to the Alberta government’s plans to expand coal mining in the Rocky Mountains appears to be growing. THE CANADIAN PRESS/AP/Mead Gruver, File
Alberta cancels coal leases, pauses future sales, as opposition increases

New Democrat environment critic Marlin Schmidt welcomed the suspension

In this March 28, 2017, file photo, a dump truck hauls coal at Contura Energy’s Eagle Butte Mine near Gillette, Wyo. (THE CANADIAN PRESS/AP/Mead Gruver, File)
First Nations seek to intervene in court challenge of coal policy removal

Bearspaw, Ermineskin and Whitefish First Nations are among those looking to intervene

Prime Minister Justin Trudeau provides an update on the COVID-19 pandemic from Rideau Cottage in Ottawa on Tuesday, Jan. 11, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Prime Minister Justin Trudeau provides an update on the COVID-19 pandemic from Rideau Cottage in Ottawa on Tuesday, Jan. 11, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau vows to keep up the fight to sway U.S. on merits of Keystone XL pipeline

Canada’s pitch to the Biden team has framed Keystone XL as a more environmentally friendly project than original

Central Alberta’s Catherine Hayreceived a letter from the Government of Canada recently stating she had to repay the government. Photo submitted
Central Albertan asked to repay CERB amount

Catherine Hay says she received a letter in November saying she had to completely repay the benefit

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
No Pfizer vaccines arriving in Canada next week; feds still expect 4M doses by end of March

More cases of U.K. variant, South African variant found in Canada

Health-care workers wait in line at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Canadians who have had COVID-19 should still get the vaccine, experts say

Pfizer-BioNTech and Moderna vaccines were found to have a 95 per cent efficacy

An empty Peel and Sainte-Catherine street is shown in Montreal, Saturday, Jan. 9, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
Poll finds strong support for COVID-19 curfews despite doubts about effectiveness

The poll suggests 59 per cent remain somewhat or very afraid of contracting COVID-19

Lacombe is looking at its options for reclaiming sewage lagoons that are no longer needed. Vesta Energy Ltd. has signed a deal to use three lagoons to store water for fracking.
Map from City of Lacombe
Energy company to use former Lacombe sewage lagoons to store water for fracking

Vesta Energy Ltd. will pay Lacombe more than $100,000 a year in 20-year deal

Most Read