Canada’s main stock index edged up to another record high on Thursday, led by gains for energy and technology shares, as investor sentiment remained positive in advance of domestic GDP data.
The S&P/TSX composite index ended up 16.46 points, or 0.1 per cent, at 31,196.71, its fifth straight day of gains and eclipsing Wednesday’s record closing high.
Volumes were lighter than normal due to the U.S. Thanksgiving holiday.
“This is a typical day in Canada when the U.S. is closed where we’re quietly positive,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. “Investors are cautiously optimistic and we’ll see what happens with GDP tomorrow.”
Analysts forecast that Canada’s third-quarter GDP data on Friday will show the economy growing at an annualized rate of 0.5 per cent, which would be an outcome that narrowly avoids a second straight quarterly contraction.
“The question will be with any of this data ... what does it mean for the Bank of Canada?” Cieszynski said. “The economy could be stabilizing, so maybe it’s time for them to pause and see how everything is working out.”
Investors see a roughly 80 per cent chance the BoC leaves interest rates on hold in December. Last month, the central bank lowered its benchmark rate to a three-year low of 2.25 per cent.
The energy sector gained 0.2 per cent as oil prices moved higher. U.S. crude oil futures were up 0.8 per cent at $59.10 a barrel. Canada’s Prime Minister Mark Carney signed an agreement with Alberta’s premier that rolls back certain climate rules to spur investment in energy production, while encouraging construction of a new oil pipeline to the West Coast.
Technology added 0.3 per cent and the consumer staples sector was up 0.2 per cent.
Just two of 10 major sectors ended lower, including utilities, which dipped 0.1 per cent.
Reuters