Financial numbers flow on the digital ticker tape at the TMX Group in Toronto's financial district on May 9, 2014. THE CANADIAN PRESS/Darren Calabrese

S&P/TSX composite resumes climb to end week propelled by COVID-19 vaccine news

S&P/TSX composite resumes climb to end week propelled by COVID-19 vaccine news

TORONTO — Canada’s main stock index resumed its upward climb to end a strong week that was shaped by heightened hopes for a COVID-19 vaccine.

The S&P/TSX composite index closed up 93.46 points to 16,675.64, rising 2.4 per cent for the week.

North American stock markets were propelled higher early in the week after Pfizer announced Monday that its coronavirus vaccine was 90 per cent effective in trials.

Hopes that it would help a global economic recovery stalled Thursday with rising virus cases and hospitalizations that increased the likelihood of new lockdowns.

Investors used that pullback to take advantage of buying opportunities, said Kevin Headland, senior investment strategist at Manulife Investment Management.

“I think today is back to picking up companies that perhaps fell unjustly yesterday,” he said in an interview.

Headland added that market gyrations from headline news seem to have a shorter shelf life as investors shrugged off Thursday’s losses by looking ahead to a vaccine announcement next week from Moderna.

Investors are also focusing a bit more on fundamentals with third-quarter earnings coming in better than expected, he said.

And there’s clarity about the results of the U.S. presidential election despite legal efforts by President Donald Trump to overturn his loss to Joe Biden.

“So I think the market is really looking where it should be, which is the fundamentals and earnings growth and that we are on a path to recovery, despite perhaps short-term headwinds I would say from increased COVID cases.”

In New York, the Dow Jones industrial average was up 399.64 points at 29,479.81 to end the week 4.1 per cent higher. The S&P 500 index was up 48.14 points at 3,585.15, while the Nasdaq composite was up 119.70 points at 11,829.29, down marginally on the week despite large early-week losses.

The stock market rally over the past week reflects past experience during an election year, said Headland.

“In the past, September and October were two of the weakest months for the year during election years and November, December two of the strongest. So it seems that the markets are playing in exactly the way they’ve played in previous election years.”

Headland said the market is looking favourably at data like jobless claims, employment, retail sales and durable goods orders that reinforce the strength of the recovery.

Eight of the 11 major sectors of the TSX were higher on Friday, led by health care, energy and consumer discretionary.

Energy rose 1.6 per cent despite lower crude oil prices with Husky Energy Inc. and Cenovus Energy Inc. up 4.6 and 4.3 per cent, respectively.

Crude fell 2.4 per cent to end a strong week in which prices climbed more than eight per cent. The decrease was the result of increased rig counts in the U.S. as supply picked up a little early in anticipation of increased demand from a more normalized economic environment, said Headland.

The December crude contract was down 99 cents US at US$40.13 per barrel and the December natural gas contract was up 1.9 cents US at US$3.00 per mmBTU.

The Canadian dollar traded for 76.06 cents US compared with 76.20 cents US on Thursday.

The heavyweight financials sector was higher on a steeper bond yield curve and anticipation that an economic recovery might preclude banks from taking large loan losses despite high provisions, said Headland.

A 4.5 per cent gain by Air Canada shares pushed up the industrials sector.

Materials was also higher as the December gold contract was up US$12.90 at US$1,886.20 an ounce and the December copper contract was up 3.3 cents US at nearly US$3.18 a pound.

Gold was down 3.3 per cent on the week and is 15 to 17 per cent undervalued, said Headland.

Consumer staple, telecommunications and utilities trailed on the day.

This report by The Canadian Press was first published Nov. 13, 2020.

Companies in this story: (TSX:AC, TSX:HSE, TSX:CVE, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press


Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Asymptomatic testing will now be available for "priority groups" who are most likely to spread the COVID-19 virus to vulnerable or at-risk populations. File photo by THE CANADIAN PRESS
Alberta identifies 1,183 new COVID-19 cases on Sunday

50.5% of all active cases are variants of concern

Whistle Stop Cafe owner Christopher Scott and his sister Melodie pose for a photo at the Mirror restaurant. (File photo by Advocate staff)
Alberta Health Services delivers ‘closure order’ to Mirror restaurant

Alberta Health Services says it has delivered a closure order to a… Continue reading

Flags bearers hold the Canadian flag high during the Flags of Remembrance ceremony in Sylvan Lake in this October file photo. (Photo by Sean McIntosh/Advocate staff)
New project to pay tribute to Canadians killed in Afghanistan

Flags of Remembrance scheduled for Sept. 11

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Alberta vaccine rollout expanding to front-line health-care workers

More than 240,000 eligible health-care workers can begin booking vaccine appointments starting… Continue reading

File photo
Security and police block the entrance to GraceLife Church as a fence goes up around it near Edmonton on Wednesday April 7, 2021. The Alberta government has closed down and fenced off a church that has been charged with refusing to follow COVID-19 health rules. Alberta Health Services, in a statement, says GraceLife church will remain closed until it shows it will comply with public-health measures meant to contain the spread of the novel coronavirus. THE CANADIAN PRESS/Jason Franson
Hundreds gather to support Alberta church shut down for ignoring COVID-19 orders

SPRUCE GROVE, Alta. — Hundreds of people are gathered outside an Alberta… Continue reading

Members of the Canadian Armed Forces march during the Calgary Stampede parade in Calgary, Friday, July 8, 2016. The Canadian Armed Forces is developing contingency plans to keep COVID-19 from affecting its ability to defend the country and continue its missions overseas amid concerns potential adversaries could try to take advantage of the crisis. THE CANADIAN PRESS/Jeff McIntosh
Canadian special forces supported major Iraqi military assault on ISIL last month

OTTAWA — Some Canadian soldiers supported a major military offensive last month… Continue reading

A woman pays her repects at a roadblock in Portapique, N.S. on Wednesday, April 22, 2020. The joint public inquiry in response to the April mass shooting in Nova Scotia has announced a mandate that includes a probe of the RCMP response as well as the role of gender-based violence in the tragedy. THE CANADIAN PRESS/Andrew Vaughan
Creating permanent memorial to Nova Scotia mass shooting victims a delicate task

PORTAPIQUE, N.S. — Creating a memorial for those killed in Nova Scotia’s… Continue reading

Conservative leader Erin O'Toole holds a press conference on Parliament Hill in Ottawa on Tuesday, April 6, 2020. Top Tory leaders of past and present will speak with supporters today about what a conservative economic recovery from COVID-19 could look like. THE CANADIAN PRESS/Sean Kilpatrick
Erin O’Toole says ‘I didn’t hide who I was’ running for Conservative leader

OTTAWA — Erin O’Toole assured Conservative supporters that he never hid who… Continue reading

Calgary Flames' Johnny Gaudreau, second from left, celebrates his goal with teammates, from left to right, Matthew Tkachuk, Noah Hanifin and Rasmus Andersson, of Sweden, during second period NHL hockey action against the Edmonton Oilers, in Calgary, Alta., Saturday, April 10, 2021. THE CANADIAN PRESS/Larry MacDougal
Jacob Markstrom earns shutout as Flames blank Oilers 5-0 in Battle of Alberta

CALGARY — It took Sean Monahan breaking out of his goal-scoring slump… Continue reading

B.C. Premier John Horgan responds to questions during a postelection news conference in Vancouver, on Sunday, October 25, 2020. British Columbia's opposition Liberals and Greens acknowledge the COVID-19 pandemic has presented huge challenges for Horgan's government, but they say Monday's throne speech must outline a coherent plan for the province's economic, health, social and environmental future. THE CANADIAN PRESS/Darryl Dyck
Horgan’s NDP to bring in throne speech in B.C., Opposition wants coherent plan

VICTORIA — British Columbia’s opposition parties acknowledge the COVID-19 pandemic has presented… Continue reading

A grizzly bear walks on a treadmill as Dr. Charles Robbins, right, offers treats as rewards at Washington State University's Bear Research, Education, and Conservation Center in this undated handout photo. Grizzly bears seem to favour gently sloping or flat trails like those commonly used by people, which can affect land management practices in wild areas, says an expert who has written a paper on their travel patterns. THE CANADIAN PRESS/HO, Anthony Carnahan *MANDATORY CREDIT*
Grizzly bears prefer walking on gentle slopes at a leisurely pace like humans: study

VANCOUVER — Grizzly bears seem to favour gently sloping or flat trails… Continue reading

FILE - In this July 27, 2020, file photo, nurse Kathe Olmstead prepares a shot that is part of a possible COVID-19 vaccine, developed by the National Institutes of Health and Moderna Inc., in Binghamton, N.Y. Moderna said Monday, Nov. 16, 2020, its COVID-19 shot provides strong protection against the coronavirus that's surging in the U.S. and around the world. (AP Photo/Hans Pennink, File)
The COVID-19 wasteland: searching for clues to the pandemic in the sewers

OTTAWA — When Ottawa Public Health officials are trying to decide whether… Continue reading

Most Read