Friday, 11 September 2015 04:14
TORONTO: Canada’s main stock index rose on Thursday, buoyed by a surge in Bombardier’s stock, gains in some retailers on rosy results and a bump higher in oil and gas company shares as the price of crude oil rallied.
Still, overall gains were muted, as investor uncertainty over global growth prospects lingered ahead of a U.S. Federal Reserve rate decision next week.
“It seems that the global economy is weakening, and we’d still be very cautious on the consumer, especially in Canada,” said Youssef Zohny, portfolio manager at StennerZohny Investment Partners+ of Richardson GMP Ltd.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 38.04 points, or 0.28 percent, at 13,569.89. Six of the 10 main groups gained, with 141 advancers and 99 decliners.
“I think a lot of people will be looking toward the Fed meeting next week and its impact on the U.S. dollar,” Zohny said. “Should the Fed be a bit more dovish and hold off on rates, that could give a boost to commodity prices.”
The energy sector gained 1.2 percent, with Canadian Natural Resources adding 1.4 percent to C$ 27.56 and Suncor Energy up 0.8 percent at C$ 35.03.
U.S. crude oil prices rose 3.4 percent to $ 45.64 a barrel, while Brent added 2.3 percent to $ 48.68.
Shares in Bombardier Inc jumped 28.7 percent to C$ 1.88 after it said its new CSeries jet was 85 percent through the certification process.
Dollarama Inc shares rose 6.7 percent to C$ 85.56 after the discount retailer reported better-than-expected profit.
At the other end of the retail spectrum, Hudson’s Bay Co also pleased investors with its quarterly results, pushing its stock up 4.6 percent to C$ 23.80.
Meanwhile, Empire Co Ltd, owner of the Sobeys supermarket chain, fell 8.9 percent to C$ 83.64 after its quarterly report.
“My sense is the stock market will end the year higher than where it is today,” said Irwin Michael, portfolio manager at ABC Funds. “Right now, we’re going through the indecision and the lack of clarity in terms of the Federal Reserve and China and what’s happening in Europe.”
The most influential gainers also included Sun Life Financial Inc, which added 3.1 percent to C$ 42.36, and Canadian Pacific Railway, which rose 1.2 percent to C$ 192.35.
The industrials group climbed 1.7 percent, while the heavyweight financials group gained 0.2 percent.
“On the industrials side, they’re probably the biggest beneficiary of the weak Canadian dollar,” StennerZohny’s Zohny said.
