Update: TSX Rallies 73 Points in Broad-Based Advance, Boosted by Stronger Oil Prices
Canada's main stock market joined the rally on Wall Street and in Europe amid optimism on growth after a batch of better than expected data, and some solid earnings reports. The S&P/TSX Composite Index gained 73 points or 0.5% to close at 15,202. The surge in equities weighed heavily on bonds, with GoCs one of the major underperformers. There were no data or events on the Canadian calendar, leaving investors to focus on global developments.
Energy led advancers on the TSX, gaining nearly 3% as crude prices rose by about the same amount, marking its biggest one-day advance of 2017. Materials were up 0.7%, boosted by a 4% rise in copper prices . Financials were up 0.2% while utilities and telecoms were the only pair of decliners, with telecoms at the bottom, falling around 0.6%.
In stock news, Cott (BCB.TO) added 6% after announcing a deal to sell its traditional beverage manufacturing business to Dutch company Refresco for US$1.25 billion. Cott Beverages is one of the world's largest producers of drinks on behalf of retailers, brand owners and distributors. Cott said the company will now focus on growing its water, coffee, tea and filtration businesses. Jamieson Wellness (JWEL.TO) gained 4% after receiving a number of positive ratings from the big banks, including an outperform ranking from RBC Dominion Securities. Heavily traded Baytex Energy (BTE.TO) jumped 8% while Encana (ECA.TO) was up 4%. Suncor Energy (SU.TO), one of the days most influential shares, gained 1.6%.
There were no Canadian economic reports today, and investors will have to wait until Friday for May GDP data, expected to come in around +0.2%, possibly matching April's rise.
The loonie was choppy and finished little changed inside the day's range at 79.97 US. On Monday, the loonie reached 80 cents US for the first time in two years.
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