Canada's main stock index hit a record high on Monday, aided by gains in healthcare and commodity-linked stocks, with sentiment getting a boost from the passage of a $1 trillion US infrastructure bill.
At 9:41 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 108.51 points, or 0.51%, at 21,564.33 led by gains in healthcare stocks .
The healthcare stocks rose 1.8% in early trading on the back of a nearly 16% jump in pot producer Cronos Group Inc. The stock was the biggest percentage gainer on the index.
The energy sector gained 1.5%, extending its winning streak for a third session. Oil prices jumped as positive signs for global economic growth supported the outlook for energy demand.
Meanwhile, global sentiment was boosted by the congressional passage of the US infrastructure bill.
"Infrastructure spending increases demand for materials and at the end of the day, it's still beneficial for Canada regardless of where the money actually gets spent, because in time that could push up commodity prices and production," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
The financials sector, which account for about 30% of the Toronto market's value, gained 0.6%.
"Financials have also been continuing to attract the interest off last week's news that banks can start paying resuming reading dividends," Cieszynski added.
The Canadian equity index scaled record highs last week, shaking off an initial dip, as higher commodity prices and upbeat corporate earnings bolstered appetite for risky assets.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 1.0% as gold futures rose 0.4% to $1,824.2 an ounce.
Highlights
The TSX posted 25 new 52-week highs and no new lows.
Across all Canadian issues there were 141 new 52-week highs and six new lows, with total volume of 45.19 million shares.
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