Update: TSX Posts Solid Gain of 102 Points in Broad-Based Advance
Canada's main stock market posted solid gains Monday, in a broad-based advance paced by energy and consumer issues. The S&P/TSX Composite Index rose 102 points or 0.6% to close at 16,085. U.S. markets posted more modest gains, with the Dow rising about 70 points and the S&P 500 up 2 points.
Sector wise, energy led the way as crude oil closed in on $17 per barrel, gaining 0.4% today. Consumer discretionary issues rose 1.8% while healthcare added 1.2% on mixed marijuana stocks. Utilities and tech weighed on the TSX.
In stock news, heavily traded Aurora Cannabis (ACB.TO) was down 2% after reaching a deal to acquire medical marijuana company MedReleaf (LEAF.TO) for $3.2 billion. LEAF shares were up 2%. DHX Media (DHX-B.TO) slumped 20% after selling off about half of its holdings in Peanuts to Sony Entertainment. Element Fleet Management (EFN.TO) was up 10% in active trading after the fleet management company appointed a new CEO and confirmed plans to shuffle its board of directors.
In economic news, Canada's Teranet/National home price index rose 0.2% in April (m/m) after the flat reading in March and 0.1% decline in February. The index slowed to a 5.6% y/y growth pace in April from the 6.6% rate of gain in March. The annual growth rate has slowed since posting an all time high gain of 14.2% y/y in June 2017. Vancouver home prices rose 0.3% m/m in April, with a 15.9% y/y gain. Toronto home prices were up 0.2% m/m, with a 1.9% y/y gain in April. The report suggests some stability in the housing market after the declines seen in the first quarter. April existing home sales, expected Tuesday, are seen falling 17.0% y/y alongside further erosion in prices.
The Canadian dollar was range-bound today, down 3 basis points at 78.12 US.
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