TORONTO: Canada’s main stock index rose to its highest level in more than three weeks on Friday as investors cheered Aritzia’s earnings report and after domestic data showed the economy adding more jobs than expected last month.
The Toronto Stock Exchange’s S&P/TSX Composite index ended up 104.86 points, or 0.3 percent, at 35,305.31, marking the highest closing level since the index posted a record high on June 16. For the week, the index was up 0.1 percent, its third straight week of gains.
“I still think that we should have a pretty good earnings season,” said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.
“You are seeing the higher-income consumers doing well and the lower-income consumers facing pressures from higher inflation, higher rates, a somewhat weaker economy in Canada.”
The Canadian economy entered into a technical recession in the first quarter, dragged down by trade uncertainty, but data on Friday added to signs of recovery in the labor market.
The economy added a net 18,200 jobs in June and the unemployment rate edged down to 6.5 percent, slightly beating estimates and continuing the momentum seen in the prior month.
Shares of Aritzia Inc rose 7.4 percent after the fashion retailer beat first-quarter revenue estimates, which helped lift the consumer discretionary index by 1.5 percent.
Consumer staples was another standout, adding 1.2 percent, while heavily weighted financials were up 0.9 percent and technology ended 0.6 percent higher.
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