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 moves up on energy gains as crude hits 2 1/2 year high

S&P/TSX composite moves up on energy gains as crude hits 2 1/2 year high

TORONTO — Canada’s main stock index inched closer to the historic 20,000-point mark on gains from the energy sector as crude prices rose to a two-and-a-half-year high.

The S&P/TSX composite index closed up 28.94 points to 19,774.41 after hitting an intraday high of 19,835.27.

In New York, the Dow Jones industrial average was up 141.59 points at 34,464.64. The S&P 500 index was up 4.89 points at 4,200.88, while the Nasdaq composite was down 1.72 points at 13,736.28.

“Canada keeps going up and up,” said Michael Currie, vice-president and investment adviser at TD Wealth.

The Toronto market has climbed 13.4 per cent so far in 2021, ahead of a 12.6 per cent gain by the Dow, 11.8 per cent by the S&P and 6.6 per cent by the tech-heavy Nasdaq.

“After so many years and long stretches of being the underdogs to the States, it’s nice to see us beating them for a change.”

Energy has been a big contributor, powered by a 37.8 per cent increase in crude oil prices.

The sector gained about one percentage point Thursday as crude oil prices rose to their highest level since Oct. 29, 2018.

The July crude oil contract was up 64 cents at US$66.85 per barrel and the July natural gas contract was down 6.9cents at US$2.96 per mmBTU.

Shares of Vermilion Energy Inc. rose 3.4 per cent and Crescent Point Energy Corp. was 2.1 per cent higher.

Prices rose on a drawdown of U.S. oil inventories, which was partly offset by ongoing concerns that a prospective Iranian nuclear deal would add half a million barrels per day to global supplies.

“The trend is still pretty nice and positive but not a big move today,” Currie said in an interview.

The Canadian dollar traded for 82.83 cents US compared with 82.58 cents US on Wednesday.

Consumer discretionary led the TSX as auto parts manufacturers Martinrea International Inc., Linamar Corp. and Magna International Inc. were up 5.6, 4.1 and 3.6 per cent, respectively.

The shares climbed as Ford and General Motors are forecasting a big shift to the production of electric vehicles.

The heavyweight financials sector was also strong after stellar quarterly bank results pushed CIBC up 2.9 per cent and Royal Bank up 1.3 per cent, but TD shares lost 2.5 per cent.

BMO and the three banks reporting Thursday posted solid results that beat expectations with loan loss provisions being lower than expected.

“These institutions are all thinking the vaccines are starting to roll out, people are going back to work, things are reopening, you’ve got to start seeing some more loan business,” said Currie.

“People were looking for good news but it’s a little bit better than we were expecting.”

Materials slipped on lower gold prices although copper prices were higher. Barrick Gold Corp. was off 5.2 per cent while forestry company Interfor Corp. was down 4.5 per cent.

The August gold contract was down US$5.30 at US$1,898.50 an ounce and the July copper contract was up 13.35 cents at US$4.66 a pound.

U.S. stock markets were relatively soft despite strong economic growth last quarter and improving unemployment claims.

The annualized U.S. GDP growth was 6.4 per cent last quarter while the number of people claiming first-time benefits dipped for a third straight week to a pandemic low of 406,000 last week.

Currie attributed the market performance to ongoing concerns about inflation.

“It just keeps coming up day after day after day and that’s putting a little lid on some of the gains in New York.”

This report by The Canadian Press was first published May 27, 2021.

Companies in this story: (TSX:IFP, TSX:ABX, TSX:CM, TSX:RY, TSX:TD, TSX:BMO, TSX:VET, TSX:CPG, TSX:MRE, TSX:LNR, TSX:MG, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press

Business

Just Posted

The City of Red Deer sits at 249 active cases of the virus, after hitting a peak of 565 active cases on Feb. 22. (Black Press file image)
Red Deer down to 119 active COVID-19 cases

Province identifies 179 new cases Saturday

Red Deer Emergency Services responded to an explosion at a duplex on Rupert Crescent Saturday morning. (Photo by Sean McIntosh/Advocate staff)
Firefighters respond to explosion in Red Deer early Saturday morning

There was an explosion at a Red Deer duplex early Saturday morning.… Continue reading

Terry Betts, of Kananaskis, looks at the vehicle he was hoping to sell during the Quick Times Red Deer Swap Meet in the Westerner Park parking lot Saturday. (Photo by Sean McIntosh/Advocate staff)
Quick Times Red Deer Swap Meet held outdoors

A big automotive swap meet was held outdoors this year in Red… Continue reading

The Alberta Sports Hall of Fame and Museum is set to re-open on July 2. (File Photo)
Alberta Sports Hall of Fame and Museum to reopen Monday

The Alberta Sports Hall of Fame and Museum will reopen for visitors… Continue reading

Huzaifa (left), Saif (middle) and Zoya (right) were among the 60 or so Red Deerians who participated in a vigil for the victims of a recent terrorist attack that killed four people in London Ont. (Photo by BYRON HACKETT/Advocate Staff)
Red Deer vigil honours victims of London, Ont. terrorist attack

About 60 people gathered at the corner of 49 Ave. and 50… Continue reading

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

Multivitamins are shown on the packaging line at the Pfizer plant in Montreal, Thursday, July 12, 2012. THE CANADIAN PRESS/Graham Hughes
Canadian drug companies want new pricing regs delayed again until after pandemic

OTTAWA — Almost three dozen Canadian pharmaceutical companies made a direct appeal… Continue reading

In this file photo, a lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018. (By THE CANADIAN PRESS)
No winning ticket for Friday’s $70 million Lotto Max jackpot

TORONTO — The massive $70 million dollar Lotto Max jackpot remained unclaimed… Continue reading

Most Read