Toronto Market on the Rise After Second Day of Gains

Canada’s primary stock index concluded another robust quarter on Thursday, surging to a fresh all-time high, buoyed by gains in resource shares amid speculation of potential interest rate cuts in the upcoming months to spur economic expansion.

The S&P/TSX Composite index of the Toronto Stock Exchange closed up by 59.95 points, or 0.3%, reaching 22,167.03, marking a record closing peak. Additionally, the index hit an intraday high at 22,220.91, surpassing its previous peak set in April 2022.

Investors anticipate a shift towards reflation in recent trading, noted Mike Archibald, a portfolio manager at AGF Investments. He highlighted the strong performance of commodities and a rally in banking shares both domestically and in the United States.

The record-breaking surge coincided with data revealing a 0.6% growth in Canada’s economy in January, representing its fastest expansion rate in a year. (Credits: Stephanie Foden)

Despite this, investors continue to bet on the Bank of Canada initiating rate cuts starting in June.

March witnessed a 3.8% increase in the TSX, marking its fifth consecutive month of gains. It registered a 5.8% advance in the first quarter, following a 7.3% gain in the previous quarter.

Archibald expressed optimism about the potential continuation of the commodity rally, suggesting a positive outlook for Canada in the second quarter if this trend persists.

Resource shares, constituting 30% of the TSX’s weight, drove the index’s gains. The materials sector, encompassing metal miners and fertilizer firms, surged by 2.1% on Thursday, fueled by a rise in gold prices.

Investors continue to bet on the Bank of Canada initiating rate cuts starting in June. (Credits: TSX)

Nutrien Ltd., the world’s leading potash fertilizer producer, is reportedly considering divestments in South America, according to sources with direct knowledge of the matter. The company’s shares climbed by 1.1%.

Energy stocks also ended higher, posting a 0.8% gain, as oil prices settled up by 2.2% at $83.17 a barrel.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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