Canada’s main stock index rose on Friday, helped by gains in the energy sector, after ending the previous session with its biggest percentage rise in nearly three years.
At 11:37 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite index was up 55.46 points, or 0.39 per cent, at 14,220.67.
The main index was set to post its first weekly gain after three consecutive weeks of declines.
Right of the index’s 11 major sectors were higher, led by a 2.2-per-cent rise in the energy sector and a 0.9-per-cent gain in the healthcare sector.
The healthcare sector was lifted by a 12.3-per-cent rise in shares of Aphria Inc.
U.S. cannabis retailer Green Growth Brands Ltd said on Thursday it would make a hostile all-stock bid for Aphria in a deal valuing it at $2.8-billion. Aphria said on Friday the bid undervalued the company.
The financials sector gained 0.6 per cent. The industrials sector rose 0.9 per cent.
U .S. stocks veered lower Friday morning, giving back early gains as the market continued to be gripped by volatile trading. Technology companies and energy stocks accounted for much of the decline. Homebuilders slumped following a report indicating that fewer Americans signed contracts to buy homes last month. The market, which is coming off a two-day winning streak, is on track for its worst year since 2008.
The S&P 500 index fell 4 points, or 0.2 per cent, to 2,484. The Dow Jones Industrial Average lost 45 points, or 0.2 per cent, to 23,093. The tech-heavy Nasdaq declined 11 points, or 0.2 per cent, to 6,567. The Russell 2000 index of smaller-company stocks gave up 1 point, or 0.1 per cent, 1,329.
On Thursday the Dow erased a 600 point loss and finished with a gain of 260 points. The swing was indicative of the volatility that has gripped the stock market throughout December.
“It seems like convulsions in either direction have been the real norm for much of December and that’s certainly been the case this week,” said Eric Wiegand senior portfolio manager for Private Wealth Management at U.S. Bank. “The initial push higher and then seeing it subside a little bit is perhaps getting back to a little bit more of a normal environment, reflecting the reality that we have still a number of issues overhanging the market.”
Volatility has been the norm in December as investors have grown worried that the testy U.S.-China trade dispute and higher interest rates would slow the economy, hurting corporate profits. The Dow has dropped 1 per cent or more in eight of the last 17 trading sessions. The market’s sharp downturn since October has intensified this month, erasing all its 2018 gains and nudging the S&P 500 closer to its worst year since 2008. Even with the two-day winning streak heading into Friday, the Dow, S&P 500 and Nasdaq are all down more than 9 per cent for the month and stocks are on track for their worst December since 1931.
Homebuilders fell broadly after the National Association of Realtors said its pending home sales index fell last month as fewer Americans signed contracts to buy homes. Higher mortgage rates and prices are squeezing would-be buyers out of the market, especially in the West. Beazer Homes USA dropped 1.7 per cent to $9.53.
Technology companies, a big driver of the market’s gains before things deteriorated in October, declined. Adobe slid 1.4 per cent to $221.95.
Tesla rose 2.1 per cent to $322.88 after naming two independent directors to its board under an agreement with federal regulators.
Oil prices lost some of their early momentum. Benchmark U.S. crude was up 0.4 per cent to $44.76 a barrel in New York. Brent crude, used to price international oils, turned lower, shedding 0.5 per cent to $52.45 a barrel in London.
Energy sector stocks declined. Cabot Oil & Gas slid 3.3 per cent to $22.98, while Newfield Exploration lost 2.7 per cent to $14.11.
In Europe, Germany’s DAX rose 1.7 per cent and France’s CAC 40 added 1.6 per cent. London’s FTSE 100 gained 2 per cent. Major indexes in Asia finished mostly higher. Tokyo’s Nikkei 225 shed 0.3 per cent, while Hong Kong’s Hang Seng ended 0.1 per cent higher. Seoul’s Kospi added 0.6 per cent. India’s Sensex gained 1 per cent. Benchmarks in Taiwan, New Zealand and Singapore also rose.
Reuters and The Associated Press