Canada main stock index hits record high
Canada’s main stock index hit a new record high to start the holiday week on gains by the key commodities sectors, while U.S. markets also breached records.
“Another record day for the markets. Generally I think investors are pretty confident,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
The S&P/TSX composite index closed up 10.27 points at 17,128.71 points after hitting an intraday record of 17,166.39.
In New York, the Dow Jones industrial average rose 96.44 points to 28,551.53. The S&P 500 index was up 2.79 points at 3,224.01, while the Nasdaq composite was up 20.69 points at 8,945.65.
On a percentage basis, all three U.S. markets outpaced the TSX with the Dow posting another record close and the other two markets setting intraday highs.
The Dow was helped by shares of The Boeing Company getting a 2.9 per cent lift following the firing of its chief executive.
“I think they needed to clear the air and somebody had to walk for all the problems that they’ve had this year so people responded favourably to that,” Cieszynski said in an interview.
The Canadian dollar traded at 75.99 cents US, compared with an average of 75.96 cents on Friday.
Materials and energy were the two strongest sectors on the day with gains in the price of precious metals and crude oil.
Shares of First Majestic Silver Corp. gained 8.1 per cent and Kinross Gold was up 3.2 per cent on heavier volumes
The February gold contract climbed US$7.80 at US$1,488.70 an ounce and the March copper contract was steady at roughly US$2.81 a pound.
Encana Corp. and Crescent Point Energy Corp. both increased 3.7 per cent while Baytex surged 9.4 per cent.
The February crude contract was up eight cents to US$60.52 per barrel and the February natural gas contract fell 9.3 cents to US$2.22 per mmBTU.
Cieszynski said oil has gotten to the point where people are starting to feel a little more confident for the energy sector.
“Energy was one sector that really lagged behind on the TSX throughout most of the year and with WTI kind of holding US$60 right now, maybe some of the energy names are starting to get some attention finally,” he said.
The health-care sector dropped nearly two per cent as shares of Aurora Cannabis Inc. lost 10.2 per cent to their lowest level in more than two years after the announcement on the weekend that Cam Battley had suddenly stepped down as chief corporate officer.
Technology and financials were also lower.
Market trading has slowed during the holiday season but the sentiment is stronger than a year ago when markets collapsed on concerns about the end of the long bull run.
Nobody’s panicking this year, there’s no tax-loss selling and people aren’t in a hurry to take profits because the economic situation is positive, Cieszynski said.
“People are steadily putting money back to work in the markets and that’s clearly the story here as we go through the next couple of weeks. It’s just the level of investor confidence is high and there’s a lot of optimism out there for 2020 and hopefully we’ll deliver.”
