Dec 16 – Canada’s main stock index rose on Thursday, extending gains to a second session, aided by strength in mining, energy stocks and an upbeat economic outlook from the U.S. Federal Reserve.
At 9:44 a.m. ET (14:44 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 158.02 points, or 0.76%, at 20,927.18.
The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 2.3% and was set for its best day in over a month, as gold futures GCc1 rose 1.2% to $1,783.4 an ounce, and copper prices also strengthened. GOL/MET/L
“Gold hasn’t really done that much this year, and that’s really disappointed a lot of investors, but seasonally its the best time for gold that i.e December, and middle of the January,” said Gregory Taylor, portfolio manager at Purpose Investments.
The benchmark equity index snapped its five-day losing streak on Wednesday after Fed Chair Jerome Powell struck an upbeat tone about the U.S. economic recovery and expressed willingness to raise interest rates as necessary to control inflation.
“I think the markets had been nervous, but it’s in the past and now it should be setting us up for some positive news prior into the end of the year,” Taylor added.
The energy sector .SPTTEN climbed 1.4%, snapping its three-day losing streak, as oil prices rose supported by record U.S. implied demand and falling crude stockpiles. O/R
The healthcare sector .GSPTTHC, down 0.5%, with major pot producers OrganiGram Holdings Inc OGI.TO and Cronos Group Inc CRON.TO were among the worst performers on the index, capping gains.
HIGHLIGHTS
Miners Pan American Silver Corp PAAS.TO and Silvercorp Metals IncSVM.TO were the largest percentage gainers in the index.
The TSX posted five new 52-week highs and one new low.
Across Canadian, issues there were 27 new 52-week highs and 12 new lows, with total volume of 38.32 million shares.
