TORONTO: Canada's main stock index is set to extend its rebound over the coming months and in 2021, boosted by an expected recovery in corporate earnings after they were hammered by the coronavirus pandemic, a Reuters poll found.

The median forecast in a survey of 27 portfolio managers and strategists was for the S&P/TSX Composite index to rise 2.3% to 17,000. It is expected to climb further to 18,000 by the end of 2021, exceeding the record high it notched in February at 17,970.51. In March, the Toronto stock market plunged to its lowest level in more than eight years at 11,172.73.

"The road to full economic recovery is long, but a rebound in economic activity and corporate earnings over the remainder of the year and through 2021, along with ongoing monetary policy stimulus, provide broad support," said Angelo Kourkafas, an investment strategy analyst at Edward Jones. Earnings for the TSX Composite are expected to grow by more than 34% in 2021, led by healthcare and consumer cyclical shares, after an estimated contraction of about 25% in the current year, I/B/E/S data from Refinitiv showed.