Canada’s main stock index rose on Friday, putting it on track for its best weekly performance in more than three months, aided by gains in technology and cyclical shares amid an upbeat mood in global equities.
At 9:47 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 87.44 points, or 0.43%, at 20,619.62. It appeared set to gain for a sixth consecutive session, its longest winning streak since mid-March.
Sentiment in global markets remained buoyant on an optimistic earnings outlook and as the Federal Reserve minutes released earlier this week eased concerns about aggressive interest rate hikes.
“I think it has been in a better mood since the FOMC minutes on Wednesday, which have largely been interpreted as providing some hope that rates may not be tightened as aggressively as had previously been anticipated, and certainly not to the extent that the likes of Brainard were suggesting just a few weeks ago,” said Stuart Cole, head macroeconomist at Equiti Capital.
TSX extends rally as energy, industrial shares gain
Technology stocks rose 1.5%, leading gains in the index with e-commerce company Shopify up 2.8%, while consumer discretionary shares fell 1.12%.
Pot producer Aurora Cannabis fell 32.0% to the bottom of the index after it upsized its previously announced bought deal financing. Canopy Growth Corp shed 14.6% after it reported a larger adjusted core loss for the fourth quarter, as demand for cannabis fell from COVID-19 lockdown-induced highs.
Healthcare shares fell 5.4%, while the energy sector dropped 0.2%, weighed down by weaker crude prices.
The financials sector gained 0.8%, with National Bank of Canada up 2.6%, leading gains after its second-quarter profit beat estimates on lower-than-expected provisions for credit losses (PCL).
The benchmark index, up 2% so far this week, was on track to post its best weekly gain since early-February as resilience in oil prices has supported energy shares, while financial stocks have advanced on the back of upbeat bank earnings.
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