TSX notches record high as commodity shares surge

Reuters

TSX notches record high as commodity shares surge

Aug 26, 2024 at 2:48 pm GMT

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TSX hits record-high

Energy sector leads the sectoral gains

Givex to be acquired by Shift4 Payments, shares jump

Updated at 9:59 a.m. ET/ 1359 GMT

By Nikhil Sharma

Aug 26 (Reuters) -Canada's main stock index hit another record high on Monday in a broad-based rally led by energy and mining stocks, while September rate cut optimism in the United States also boosted investor sentiment.

At 9:59 a.m. ET (13:59 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 118.64 points, or 0.51%, at 23,404.72, and is poised to extend its record-setting streak from Friday.

At least ten major sectors on TSX logged gains, with the energy sector .SPTTEN climbing 2.1% as oil prices rose nearly 3% on reports of a near total production stoppage in Libya. O/R

The materials sector .GSPTTMT rose 0.5% tracking gold and copper prices that gained due to a weaker dollar and on hopes of a U.S. rate cut next month. GOL/ MET/L

Federal Reserve Chair Jerome Powell on Friday endorsed the commencement of policy easing cycle, while acknowledging that inflation was on a sustainable downward path to a 2% target.

"When you have five and a quarter Fed funds rate and inflation rate at around 2.5%, there's a lot of room for cutting," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

Market participants are betting on a higher chance of 25 basis points cut at the policy meeting next month. 0#FEDWATCH

The focus will be on the U.S. personal consumption and gross domestic product estimates expected later in the week, along with AI-darling Nvidia's NVDA.O quarterly results due on Wednesday.

Back home, the Canada Industrial Relations Board ordered to end work stoppages at the railways operators that posed a threat to Canada's export-driven economy.

In an important week for Canadian earnings, major lenders like Bank of Nova Scotia BNS.TO, Royal Bank of Canada RY.TO, and the National Bank of Canada NA.TO are expected to report their quarterly results.

Among corporate news, Givex GIVX.TO shares jumped 50% after Shift4 Payments agreed to acquire the Canadian technology firm in a deal valued at C$200 million.

Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay Kishore

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