Toronto index rises as industrial stocks offset inflation data worries
- Toronto Stock Exchange's S&P/TSX composite index was up 22.26 points, or 0.11%, at 21,109.25
Canada's main stock index rose on Wednesday, as Canadian National Railway led gains in industrial stocks helping offset the impact from data showing the country's annual inflation rate surged to a new 18-year high.
At 9:52 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 22.26 points, or 0.11%, at 21,109.25.
Industrials jumped over 1% with Canadian National Railway leading gains on news that the railroad operator's CEO Jean-Jacques Ruest will retire at the end of January, following investor demands for his exit after the company's failed bid for Kansas City Southern.
Canada's annual inflation rate accelerated to 4.4% in September, the highest since February 2003, and up from a year-over-year increase of 4.1% in August, Statistics Canada said.
"Canadian inflation pressures continue to increase adding pressure on the Bank of Canada to potentially take additional action on reducing stimulus when it meets next week," said Colin Cieszynski, chief market strategist, SIA Wealth Management.
TSX retreats on weakness in healthcare shares, glum China data
After snapping a seven-month winning streak in September, the Canadian equity index rebounded to record highs in recent sessions on the back of stronger commodities and hopes of a seasonally strong period for the market.
Leading declines was the healthcare sector, with pot producer Tilray Inc and OrganiGram Holdings being the biggest percentage decliner on the index.
The heavyweight energy group fell 0.5% tracking a 1% slide in crude prices.
Highlights
In earnings, Magna International Inc fell 1.9% after the auto parts maker cut its full-year sales outlook, expecting a fall in global light vehicle production due to chip shortages and supply chain disruptions.
Canadian National Railway and Innergex Renewable Energy Inc were the largest percentage gainers on the TSX.
The TSX posted eight new 52-week highs and no new lows.
Across all Canadian issues there were 63 new 52-week highs and 13 new lows, with total volume of 43.58 million shares.
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