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

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

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’

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

U.S. border officers at the Peace Arch crossing arrested two men on California warrants this week. (File photo)
Ottawa predicts system delays, backlogs unless court extends life of refugee pact

Canada and the United States recognize each other as safe places to seek protection

Conservative member of Parliament Michelle Rempel Garner, left to right, Conservative Leader Erin O’Toole and Conservative Deputy Leader Candice Bergen arrive to hold a press conference in Ottawa on Thursday, Oct. 22, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No-confidence showdown over sweeping Tory motion on government handling of pandemic

The Conservative motion is to be put to a vote Monday and has the support of both the Bloc Québécois and NDP

From l-r., first lady Melania Trump, President Donald Trump, moderator Kristen Welker of NBC News, Democratic presidential candidate former Vice President Joe Biden and his wife Jill Biden on stage at the conclusion of the second and final presidential debate Thursday, Oct. 22, 2020, at Belmont University in Nashville, Tenn. (AP Photo/Patrick Semansky)
Trump, Biden fight over the raging virus, climate and race

Republican president declared the virus, which killed more than 1,000 Americans on Thursday alone, will “go away.”

Most Read