Canada's main stock market outperformed Thursday with a broad-based, triple digit gain. The S&P/TSX Composite Index gained 106 points or 0.7% to close at 16,015. Despite the solid rise, the Canadian markets weren't really impacted by the 0.8 point slip in the November Ivey PMI to 63.0 or the 3.5% rise in October building permits.
Financials (+0.6%), energy (+0.4%) and industrials (+0.7%) led gainers on the TSX, though all sectors were in the green, save for utilities and consumer staples, which were flat to negative. Oil prices rose 1.3% while gold settled 1% lower.
In stock news, Canadian Western Bank (CWB.TO) rose 2% after posting a $200 million earnings gain in its latest quarter, a record number for the Western Canadian-based bank. Valeant Pharmaceuticals (VRX.TO) gained 4% while WestJet Airlines (WJA.TO) was up 3%. Heavily traded Aurora Cannabis (ACB.TO) shed 9%. Bank of Nova Scotia ( BNS ) paced the big banks, rising 1.2%.
In economic news, building permits values grew 3.5% in October after a revised 4.9% bounce in September (was +3.8%). Residential permit values improved 2.3%, with single units up 1.6% and multiple units rising 3.0% in value. Non-residential permit values expanded 5.5%. Canada's housing market has seen some moderation this year in select regions amid regulations designed to cool housing. But this report provides a reminder that the combination of lean mortgage rates, strong employment and solid economic growth remain powerful drivers of housing demand and construction, said Action Economics. Meanwhile, Canada's Ivey PMI slipped to 63.0 in November from a seasonally adjusted 63.8 in October that was the strongest reading since the 66.5 in February. The employment index improved to 53.9 from 52.0. The prices index jumped to 67.7 from 59.0. The not seasonally adjusted Ivey PMI dipped to 62.4 in November from 63.5 in October. The modest decline in the Ivey PMI left the index at a still elevated level, with the six-month moving average of the Ivey PMI rising to 60.7 in November from 59.2 in October. The report remains consistent with an expanding economy, said Action Economics.
The Canadian dollar lost about a third of a cent to 77.83 US.