TORONTO: Canada’s main stock index reversed course to trade higher on Monday, boosted by technology and healthcare stocks, although the benchmark index was set for its worst month since September.
At 9:40 a.m. ET (1440 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 20.85 points, or 0.1%, at 20,762.6, with technology stocks leading gains.
On a monthly basis, however, the benchmark index was set for its worst show in four months on concerns around sooner than expected rate hikes by central banks and weak tech stocks.
“It’s our belief that financial markets went through a cleansing period in January, working off the over exuberance of 2021 which was characterized by overspeculation in unprofitable companies, SPACs, cryptocurrencies, and the mass participation of retail investors,” said Brandon Michael, senior analyst at ABC Funds.
“We believe the current corrective phase will lead to the next leg of the secular bull market in equities.”
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