Financials help TSX break losing streak
Broad-based rally took cue from U.S.: analyst
A broad-based rally on the Toronto Stock Exchange yesterday helped its benchmark index break a five-day losing streak.
The S&P/TSX composite index was up 175.87 points, or 1.2 per cent, to 14,778.46. The TSX Venture composite squeaked by with a gain of 5.14 points, or 0.2 per cent, to 2,639.40.
Adrian Mastracci, portfolio manager with KCM Wealth Management in Vancouver, said the TSX mostly took its cue from the U.S., where stocks also rose. The Dow Jones industrial average was up 165.77 points, or 1.4 per cent, to 12,307.35. The Nasdaq composite index gained 50.15 points, or 2.1 per cent, to 2,454.50. The S&P 500 rose 20.16 points, or 1.5 per cent, to 1,360.03.
Mr. Mastracci said he used yesterday’s rally as an opportunity to sell some stocks.
“I just used it as a good day to clean up some the stuff that shouldn’t be there,” he said. “And I got a good price for it.”
Financial stocks had the most positive influence on the main TSX index yesterday. The financials index gained 1.6 per cent. Royal Bank of Canada was up 58 cents, or 1.2 per cent, to an even $49. Bank of Montreal rose 40 cents, or 0.9 per cent, to $44.90.
Toronto’s energy stocks also had a good day, despite a drop in oil prices. The energy index was up 0.9 per cent. EnCana Corp. rose $1.99, or 2.2 per cent, to $93.70. Canadian Oil Sands Trust was up $1.39, or 2.7 per cent, to $52.74.
Crude oil on the New York Mercantile Exchange fell $1.88 to $134.86 U.S. a barrel after Saudi Arabia’s oil minister said the current rate for oil was not justified.