Canada’s main stock index opened higher on Wednesday with broad-based gains after U.S. President Donald Trump said he would extend the Iran ceasefire indefinitely, even as Tehran’s seizure of two ships in the Strait of Hormuz kept investors cautious.
At 10:41 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite Index was up 0.5% at 33,975.86 points.
Iran’s semi-official Tasnim news agency said the Revolutionary Guards had seized two vessels for maritime violations and escorted them to Iranian shores. It was the first time Iran has seized ships since the war began at the end of February.
Energy shares rose 0.3%, mirroring higher oil prices amid supply concerns.
READ MORE: TSX hits fresh high as tech, financial stocks strengthen
There’s tentative optimism among investors, but the oil market is trading as though the ceasefire is fragile, said Brian Madden, chief investment officer at First Avenue Investment Counsel.
The overall market will likely focus on corporate earnings in the next couple of weeks as the initial shock of the war is over, he said.
Ten of 11 TSX sectors were trading in the green on Wednesday.
Shares of miners led gains on the index; Silvercorp Metals, AbraSilver Resources and Ivanhoe Mines rose between 5.8% and 5.9%, tracking higher gold and silver prices.
Among other stocks, Rogers Communications rose 10.4% after the telecom company posted first-quarter revenue slightly above estimates, as it benefited from expanding its media and sports portfolio.
Metro fell 2.9% after the grocery retailer said the Laval labor dispute will have an impact on the company’s third-quarter results.
Comments