A street sign along Bay Street in Toronto's financial district is shown on Tuesday, January 12, 2021. THE CANADIAN PRESS/Nathan Denette

S&P/TSX composite briefly cracks 20,000-point mark for first time on energy gains

S&P/TSX composite briefly cracks 20,000-point mark for first time on energy gains

TORONTO — The S&P/TSX composite index briefly cracked the 20,000-point level for the first time on a surge in the key energy sector after OPEC gave an optimistic outlook for global demand.

“I think that’s really the driving force behind what’s happening in the market today,” said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.

The cartel and Russia agreed to add back barrels to the global market. It would increase production by 841,000 a day in July and hold that flat until April 2022.

The Saudi oil minister gave a bullish outlook saying global reopenings are really taking hold as COVID continues to fade in many parts of the world and vaccinations continue to rise.

The result was European benchmark Brent crude prices closing at their highest level since January 2020 and West Texas Intermediate reaching its highest price since the fourth quarter of 2018.

The July crude oil contract was up US$1.40 at US$67.72 per barrel after reaching a high of US$68.87. The July natural gas contract was up 11.8 cents at US$3.10 per mmBTU.

The energy sector gained 4.4 per cent with shares of Crescent Point Energy Corp. up 6.5 per cent and Cenovus Energy Inc. 6.2 per cent higher.

Archibald said the sector spawned risk-on action in the market as 10 of the 11 major sectors were higher.

He foresees the energy sector to keep rising as oil companies won’t be able to bring back production quickly as demand recovers at some point to pre-pandemic levels.

“It seems to me energy is probably going to continue to work here and it’s really a big driver of the TSX performance today.”

Canada’s main stock index closed up 245.02 points to 19,976.01 after trading as high as 20,022.13 before the close.

In New York, the Dow Jones industrial average was up 45.86 points at 34,575.31. The S&P 500 index was down 2.07 points at 4,202.04, while the Nasdaq composite was down 12.26 points at 13,736.48.

The Canadian dollar traded for 83.06 cents US compared with 82.84 cents on Monday.

Archibald said the loonie may have reached its short-term peak given that lockdowns are expected to moderate economic growth in the second quarter.

Canada’s GDP increased 5.6 per cent in the first quarter but that was below the 6.8 per cent expected by economists while the previous quarter was revised slightly lower.

Materials was up 1.6 per cent despite a dip in metals prices.

The August gold contract was down 30 cents at US$1,905.00 an ounce and the July copper contract was down 2.4 cents at US$4.65 a pound.

Technology increased as shares of BlackBerry Ltd. surged 12.3 per cent and Shopify Inc. was up 2.1 per cent.

The heavyweight financials sector was higher, led by banks as CIBC rose 2.2 per cent, Bank of Montreal was up 1.4 per cent and the Royal Bank of Canada was 1.3 per cent higher.

This report by The Canadian Press was first published June 1, 2021.


Ross Marowits, The Canadian Press


Just Posted

Alberta Premier Jason Kenney arrives at the 2021 budget in Edmonton on Thursday, Feb. 25, 2021.THE CANADIAN PRESS/Jason Franson
Alberta launches COVID vaccine lottery with million-dollar prizes to encourage uptake

The premier says the lottery will offer three prizes worth $1 million a piece, as well as other prizes

Dharmesh Goradia, and his daughter Vidhi and wife Chaitali, at the 2017 festival for the Godess Durga, held at the Golden Circle. (Photo contributed)
Draft curriculum misses the mark for central Alberta Hindu society

Meeting scheduled with Alberta Education officials

Air Canada planes sit on the tarmac at Pearson International Airport during the COVID-19 pandemic in Toronto on Wednesday, April 28, 2021. Air Canada says it will recall more than 2,600 employees who were furloughed during the COVID-19 pandemic. THE CANADIAN PRESS/Nathan Denette
Alberta’s tourism sector hurt by COVID-19 pandemic: ATB Financial

Between border closures, public health measures and hesitancy to travel, Alberta’s tourism… Continue reading

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

A man wears a face mask as he walks by a sign for a COVID-19 vaccination site in Montreal, Sunday, May 16, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
Canada paid a premium to get doses from Pfizer earlier than planned

OTTAWA — Canada paid a premium to get more than 250,000 doses… Continue reading

The Kamloops Indian Residential School in Kamloops, B.C., is shown in this 1930 handout photo. HO — Deschatelets-NDC Archives
Calls grow for Ottawa to review settlement decisions for residential school survivors

Lawyer Teri Lynn Bougie still cries when she talks about the final… Continue reading

Syringes are readied at a COVID-19 mobile vaccination clinic for members of First Nations and their partners, Friday, April 30, 2021 in Montreal. Most of the federal contracts for COVID-19 vaccines allow for Canada to donate some of its doses to other countries or international aid organizations and in at least three cases, for the doses to be resold.THE CANADIAN PRESS/Ryan Remiorz
Canada’s vaccine contracts allow for doses to be donated, in some cases resold

OTTAWA — Most of the federal contracts for COVID-19 vaccines allow for… Continue reading

Grand Chief Stewart Phillip, President of the Union of British Columbia Indian Chiefs, responds to the report on the National Inquiry into Missing and Murdered Indigenous Women and Girls, in Vancouver, on Monday June 3, 2019. As stories of the horrors of residential schools circulate after the Tk'emlups te Secwepemc First Nation announced it had located what are believed to be the remains of 215 children, Grand Chief Stewart Phillip of the Union of B.C. Indian Chiefs said he feels a connection with the former students. THE CANADIAN PRESS/Darryl Dyck
Two sides of the same coin: Ex-foster kids identify with residential school survivors

VANCOUVER — As stories of the horrors of residential schools circulate after… Continue reading

A woman sits and weeps at the scene of Sunday's hate-motivated vehicle attack in London, Ont. on Tuesday, June 8, 2021. Four members of a family in London, Ont., are set to be buried today. The public has been invited to help celebrate the lives of Talat Afzaal, 74, her son Salman Afzaal, 46, his wife Madiha Salman, 44, and their 15-year-old daughter Yumna Salman.THE CANADIAN PRESS/ Geoff Robins
Funeral to be held today for London family killed in attack

LONDON, Ont. — Four members of a Muslim family killed in what… Continue reading

Canadian Prime Minister Justin Trudeau and United States President Joe Biden listen to United Kingdom Prime Minister Boris Johnson deliver opening remarks at a plenary session at the G7 Summit in Carbis Bay, United Kingdom Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau to discuss foreign policy with G7 leaders at second day of summit meeting

CARBIS BAY, CORNWALL, ENGLAND — Foreign policy is on the agenda for… Continue reading

Most Read