Canadian market posts biggest gain in two months

By on January 21, 2017

Canadian market posts biggest gain in two months (Photo By Halava (Own work) [CC BY-SA 3.0)
Canadian market posts biggest gain in two months (Photo by Halava (Own work) [CC BY-SA 3.0)
TORONTO—Canada’s main stock market in Toronto on Friday wrapped up the week with its largest single-day gain in two months, as strong performances in Materials, Financials and Energy groups contributed.

The Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite climbed 138.07 points, or 0.90 percent, to finish the week at 15,547.88 points. Eight of the 10 sub-sectors finished the session higher.

After starting 2017 ahead 298.99 points in the first three sessions, the TSX struggled over the next two weeks, falling a combined 176.77 points. Friday’s performance cut into the losses and represents the largest single-day increase since a Nov. 21, when the index soared 175.84 points.

During the trading day, three of the index’s largest groups made the biggest impact. Materials soared 1.64 percent, Financials propelled 0.98 percent, while Energy climbed 0.82 percent.

The TSX Materials Group, which is comprised of producers of gold, precious metals, and raw materials, prospered as the spot price of gold moved up USD5.50 an ounce to finish at 1,210.00. Subsequently, shares of gold miners B2Gold Corp. and Yamana Gold Inc. rose 2.73 percent and 2.38 percent, respectively.

Financials was boosted by gains in the country’s two largest banks. No. 1 ranked Royal Bank of Canada shares climbed 0.95 percent to 94.17 Canadian dollars (USD70.64), while No. 2 ranked Toronto-Dominion Bank finished at 67.45 Canadian dollars (USD50.59) a share, a 1.26 percent ascend.

Energy stocks gained as the spot price of crude oil ascended on the day. The price for a barrel of Brent delivered in March closed at USD55.43, a 2.33 percent increase. Calgary-based energy firms Encana Corp. and Suncor Energy Inc. saw respective gains of 1.38 percent and 0.33 percent.

Other groups that finished higher on Friday included: Consumer Staples (0.77 percent), Telecommunications (0.75 percent), Industrials (0.69 percent), Information Technology (0.54 percent), and Consumer Discretionary (0.35 percent).

The TSX Consumer Discretionary Group, which consists of producers of non-essentials products such as automobiles, apparel and entertainment, gained as Montreal-based online gambling firm Amaya Inc. shares rose 3.21 percent to 18.31 Canadian dollars (USD13.73) after revising their fiscal 2016 forecast upwards due to better than expected results from casino products and a successful re-launch in the Portugal market.

Also making news in the group was Restaurant Brands International Inc., the parent company of fast food chains Tim Hortons and Burger King, announcing plans to launch an app that allow customers to place orders and pay across all of its 4,000 Canadian stores.

Over the last month, the app has been tested in selected markets in United States and Canada and is expected to launch in spring. Shares of the Oakville-based firm finished at 64.79 Canadian dollars (USD48.60), a 0.29 percent uptick.

Groups to finish on the losing side on Friday were Health Care and Utilities, fading 0.54 percent and 0.11 percent, respectively.

On the economic slate, Statistics Canada reported that consumer price index for December increased to 1.5 percent, a 0.3 percent increase from the month prior. On an unadjusted month-to-month comparison, the inflation rate fell 0.2 percent. By category, nine of the 12 lost ground in December. Gasoline (3.1 percent), Energy (1.6 percent), and Transportation (1.0 percent) categories finish higher.

The Canadian dollar retreated 0.08 cents to close the week at a USD0.7504.