TSX rises to three-week but caution remains on rate outlook
By Fergal Smith
(Reuters) -Canada’s main stock index rose on Wednesday to its highest closing level in nearly three weeks, helped by gains for energy and technology shares, but investors were cautious about chasing further gains until the U.S. Federal Reserve halts its rate hikes.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 180.12 points, or 0.9%, at 19,837.65, its fourth straight day of gains and its highest closing level since March 9.
Wall Street also notched strong gains.
“Discretion is the better part of valor,” said Joseph Abramson, co-chief investment officer at Northland Wealth Management, quoting the well-known proverb. “I think it’s time to be a little bit more cautious after the bounce. … The Fed and markets are on a collision course.”
Information technology rose 1.5% as bond yields steadied, while both energy and heavily weighted financials advanced 1%.
Dollarama Inc shares added 2.5% as the company reported a surge in same-store sales.
“It’s a great business. They operate their store count quite well and they’re very efficient with respect to their costs,” said Mike Archibald, vice-president and portfolio manager at AGF Investments.
Canada’s 2023 budget took a big step toward luring more investment in clean technology to build a low-carbon economy, analysts said on Wednesday, but gaps must still be filled to make the country more competitive with the United States.
The utilities sector, which includes some renewable energy companies, was up 1.1%.
(Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Maju Samuel, Will Dunham and Deepa Babington)