Toronto stock market starts week with broad rally led by energy sector

Toronto stock market starts week with broad rally led by energy sector

TORONTO — Canada’s main stock index got a lift to start a holiday-shortened week with a broad-based rally led by the energy sector.

The month of June looks set to end with the same trajectory as April and May, in a rebound from the March lows.

The first half of the year was dynamic with a big drop as the COVID-19 pandemic resulted in an economic shutdown followed by a swift market recovery, said Craig Fehr, investment strategist, Edward Jones

“I think as we progress from here, markets are really going to take their cues from the incremental progress, or the lack thereof, in the economic restart.”

The S&P/TSX composite index closed up 200.74 points at 15,389.72. That’s less than 200 points or 1.3 per cent up for the month with one day of trading to go before the Canada Day holiday.

In New York, the Dow Jones industrial average was up 580.25 points at 25,595.80. The S&P 500 index was up 44.19 points at 3,053.24, while the Nasdaq composite was up 116.93 points at 9,874.15.

Markets partially recovered from last week’s selloff despite ongoing concern about rising COVID-19 infections in some U.S. states. Unlike earlier cases that prompted a broad lockdown, the latest rise in cases doesn’t seem to include a commensurate rise in hospitalizations and deaths.

“And so while that’s a small silver lining I think it’s a reflection of the fact that we are seeing some progress in the evolution of this health care crisis,” Fehr said in an interview.

However, he said markets have been anxious because of the rise in cases and the potential for reopening efforts to slow.

“I just don’t think it’s going to be one direction or another. I think there’s too much of a mixture of both good and bad news for the markets to repeat what they did in February and March to the downside or to repeat what they did in April and May to the upside.”

Fehr said Monday’s gains, following last week’s losses ”is a good reminder that it’s probably not going to be a one-way path either down or up from here.”

Also supporting Monday’s market gains was market data showing a record rebound in U.S. home sales in May and profits at Chinese industrial firms rising for the first time in six months in May.

Boeing shares also got a big lift after the Federal Aviation Administration confirmed that it had approved key certification test flights for the grounded 737 Max.

Shares of Air Canada climbed 4.7 per cent to help the industrials sector.

All 11 major sectors of the TSX gained, led by energy and consumer discretionary.

Higher crude oil and natural gas prices pushed shares of Shawcor Ltd. up 7.3 per cent, Cenovus Energy Inc. up 4.9 per cent, Husky Energy Inc. up 4.6 per cent and Suncor Energy Inc. up nearly four per cent.

The August crude contract rose US$1.21 at US$39.70 per barrel and the August natural gas contract was up 16.5 cents at nearly US$1.71 per mmBTU.

Shopping mall fast food chain MTY Food Group Inc. increased 7.4 per cent to help the consumer discretionary sector.

The heavyweight financials sector rose by nearly one percentage point on gains by the Bank of Nova Scotia and Toronto-Dominion Bank.

Materials rose, with forest-products suppliers Norbord Inc. and Interfor Corp. up 5.8 and 4.7 per cent respectively.

The August gold contract was up 90 cents at US$1,781.20 an ounce and the September copper contract was up 1.35 cents at US$2.69 a pound.

The Canadian dollar traded for 73.09 cents US compared with 73.12 cents US on Friday.

This report by The Canadian Press was first published June 29, 2020.

Companies in this story: (TSX:AC, TSX:SCL, TSX:CVE, TSX:HSE, TSX:SU, TSX:MTY, TSX:BNS, TSX:TD, TSX:OSB, TSX:IFP, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press

Business

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

Just Posted

Ryen Williams, 11, with a lost miniature horse at JJ Collett Oct. 23. Photo by Don Williams
UPDATE: Owner found

Father and son found miniature horse while out for a walk at JJ Collett

Alberta has 3,651 active cases of COVID-19. (File photo)
432 new COVID cases sets another record Friday

Central zone holds steady at 126 active cases

Paula Law took the oath of office on Oct. 19 with Lacombe County Manager Tim Timmons. Photo courtesy Lacombe County.
Lacombe County re-elects Paula Law as Reeve

This will be Law’s eighth term as Reeve and tenth year on the county council

Rieley Kay owns both Moe’s Pizza and Cilantro and Chive which are businesses located in downtown Lacombe. (Alannah Page/Lacombe Express)
City of Lacombe announces updated plans for downtown redevelopment

The plan would see $1.7 million spent on the downtown over the next 10 years

"We are looking seriously at the spread and determining what our next steps should be," says Alberta’s chief medical officer of health, Dr. Deena Hinshaw, as the daily number of COVID-19 cases continues to climb.
427 new COVID cases is highest in Alberta ever

Central zone has 126 active cases of COVID-19

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

Comedic actor Seth Rogen, right, and business partner Evan Goldberg pose in this undated handout photo. When actor Seth Rogen was growing up and smoking cannabis in Vancouver, he recalls there was a constant cloud of shame around the substance that still lingers. Rogen is determined to change that. (Maarten de Boer ohoto)
Seth Rogen talks about fighting cannabis stigma, why pot should be as accepted as beer

‘I smoke weed all day and every day and have for 20 years’

Leader of the Opposition Erin O’Toole rises during Question Period in the House of Commons Thursday October 22, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
O’Toole tells Alberta UCP AGM Liberals were ‘late and confused’ on COVID response

He says Alberta Premier Jason Kenney has taken charge and not waited to make things happen

Alberta Premier Jason Kenney arrives for an announcement at a news conference in Calgary, Alta., Tuesday, Sept. 15, 2020. THE CANADIAN PRESS/Todd Korol
Inquiry into oil and gas foes to deliver report next year: Kenney

A lawsuit filed by environmental law firm Ecojustice argues the inquiry is politically motivated

The Canadian border is pictured at the Peace Arch Canada/USA border crossing in Surrey, B.C. Friday, March 20, 2020. More than 4.6 million people have arrived in Canada since the border closed last March and fewer than one-quarter of them were ordered to quarantine while the rest were deemed “essential” and exempted from quarantining. THE CANADIAN PRESS/Jonathan Hayward
Majority of international travellers since March deemed ‘essential’, avoid quarantine

As of Oct. 20, 3.5 million travellers had been deemed essential, and another 1.1 million were considered non-essential

This photo provided by Air Force Reserve shows a sky view of Hurricane Epsilon taken by Air Force Reserve hurricane hunter team over the Atlantic Ocean taken Wednesday, Oct. 21, 2020.   Epsilon’s maximum sustained winds have dropped slightly as it prepares to sideswipe Bermuda on a path over the Atlantic Ocean.  The National Hurricane Center says it should come close enough Thursday, Oct. 22, evening to merit a tropical storm warning for the island.  (Air Force Reserve via AP)
Hurricane Epsilon expected to remain offshore but will push waves at Atlantic Canada

Epsilon is not expected to have any real impact on land

A voter places her absentee ballot in the ballot box, Wednesday, Oct. 7, 2020, at Merrill Auditorium in Portland, Maine. THE CANADIAN PRESS/AP/Robert F. Bukaty
American voters living in Canada increasingly being counted in presidential race

The largest number of Canadian-based American voters cast their ballots in New York and California

A composite image of three photographs shows BC NDP Leader John Horgan, left, in Coquitlam, B.C., on Sept. 25, 2020; BC Green Party Leader Sonia Furstenau, centre, in Victoria on Sept. 24, 2020; and BC Liberal Party Leader Andrew Wilkinson Pitt Meadows, B.C., on Sept. 24, 2020. THE CANADIAN PRESS/Darryl Dyck, Chad Hipolito
British Columbia votes in snap election called during COVID-19 pandemic

NDP Leader John Horgan called the snap election one year before the fixed voting date

Nunavut's provincial flag flies on a flag pole in Ottawa, on Tuesday June 30, 2020. The annual report from Nunavut's representative for children and youth says "complacency and a lack of accountability" in the territory's public service means basic information about young people needing services isn’t tracked. THE CANADIAN PRESS/Adrian Wyld
Nunavut’s young people ‘should be expecting more’ from government services: advocate

‘The majority of information we requested is not tracked or was not provided by departments’

Most Read