Toronto stocks rise, set to snap 3-month slump
2022.07.29 19:18
FILE PHOTO: A Toronto Stock Exchange sign adorns a doorway at the Exchange Tower building in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren
By Bansari Mayur Kamdar and Johann M Cherian
(Reuters) – Canada’s resource-heavy main stock index rose on Friday, helped by strong company earnings, while data showing Canadian economy most likely grew above Bank of Canada’s projection boosted expectations of another big hike in September.
The index is on track to snap its three-month slump, up 4% in July, helped by a rally in crude prices, strong earnings and a recovery in many industrial and technology stocks.
At 10:10 a.m. ET (14:10 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 179.79 points, or 0.92%, at 19,636.5.
Boosting the index, oil major Imperial Oil (NYSE:IMO) Ltd gained 3.5% on reporting a more than six-fold jump in second-quarter profit, as the energy company benefited from a surge in energy prices after the Russian invasion of Ukraine.
“It is really encouraging to see the special dividends and buybacks being announced by these companies and it’s a good reminder for investors as to how much cash flow is being generated by the big energy companies who are dependent on the higher prices,” said Greg Taylor, portfolio manager at Purpose Investments.
Energy stocks advanced 2.6%. Energy is the best performing sector so far this year, up about 45%, helping the commodity heavy TSX/S&P index outperform its U.S. and European peers. [O/R]
Meanwhile, the Canadian economy most likely grew at an annualized rate of 4.6% in the second quarter over the first, above the Bank of Canada’s projection, boosting market expectations of another big hike in September.
The rate-sensitive financials sector gained 1.1%, while industrials rose 1.3%.
TFI International (NYSE:TFII) rose 3.3% on reporting better-than-expected earnings, while auto parts maker Magna International (NYSE:MGA) slipped 0.7% on missing profit estimates, hit by higher commodity and energy costs worsened by Russia’s invasion of Ukraine.
