Toronto Market Breaks Losing Streak as Bargain Hunters Enter, Reports Reuters

By Fergal Smith

Canada’s primary stock index saw an increase on Monday, marking its first rise after five consecutive sessions. Heavily weighted sectors like financials and industrials gained as investors sought to capitalize on lower stock prices.

The S&P/TSX composite index of the Toronto Stock Exchange finished up by 245.72 points, or 1.1%, reaching 23,027.15. This uptick followed a close on Friday that was the lowest in three weeks.

"Part of the momentum comes from buyers stepping in during this dip, which can sometimes be a risky strategy," noted Michael Sprung, president of Sprung Investment Management.

Similarly, major Wall Street indexes also climbed after a week of declines, as investors looked for bargain opportunities. They await upcoming inflation reports and the Federal Reserve’s policy decision scheduled for next week.

"Concerns are shifting more towards the economy’s overall state rather than just focusing on interest rates," Sprung added. "We are likely to experience a tumultuous market in the near term."

In sector performance, financials, which represent approximately 31% of the TSX’s market capitalization, rose by 1.5%. Industrials increased by 1.4%, while technology stocks were up by 1.5%. The materials sector added 1.1% as gold prices climbed. Oil prices also rose, settling 1.5% higher at $68.71 per barrel due to worries that a hurricane forecasted to hit Louisiana could disrupt production.

Despite these gains, energy was the only major sector to experience a decline, falling by 0.2%.

Methanex Corp announced its agreement to acquire the methanol business of Dutch green fuel company OCI Global for $2.05 billion. However, shares of the methanol producer dropped by 7.9%.

Additionally, shares of Air Canada faced downward pressure, decreasing by 1.2%, following the announcement that the airline is finalizing plans to suspend most operations as negotiations with the pilot union approach a standstill.