TSX Extends Weekly Winning Streak in Broad-Based Rally, Reports Reuters

By Fergal Smith

Canada’s primary stock index experienced broad gains on Friday, continuing its winning streak for the week. Investors reacted positively to U.S. inflation data that may indicate the Federal Reserve could begin to cut interest rates in the coming months.

The Toronto Stock Exchange’s S&P/TSX composite index increased by 206.78 points, or 0.9%, closing at 22,814.81 after three consecutive days of declines. For the week, the index recorded a 0.6% rise, marking its fifth consecutive weekly gain.

"Markets are rebounding sharply today following the release of the core PCE price index data, which came in lower than expected," said Brandon Michael, senior investment analyst at ABC Funds.

Major stock indexes in the United States also saw increases as leading tech companies recovered and the inflation data reinforced expectations for potential interest rate cuts by the Fed in September.

"Market breadth is strong today. There’s a positive trend across all sectors, which is always an encouraging sign," Michael noted.

All 10 major sectors of the Canadian index showed gains, with technology leading the way with a 1.6% increase. The industrial sector rose by 1%, while heavily weighted financial shares added nearly 1%.

Bank of Nova Scotia reported that it has resolved a technical issue affecting thousands of clients in Canada, with many reporting missing paychecks and related problems. Shares of Scotiabank closed 0.7% higher.

Canadian National Railway Co, one of the country’s largest rail companies, resumed its operations through Jasper National Park after a significant wildfire forced a suspension. Shares of CN Rail increased by 1.8%.

Winpak, a packaging and containers company, stood out with its shares soaring by 7.7% after analysts at BMO and CIBC raised their price targets for the stock.