Canada's main stock index rose on Thursday as strong commodity prices lifted energy and materials stocks, while a retreat in U.S. Treasury yields eased fears of rising U.S. inflation further boosting sentiment.
The TSX perked 134.64 points to begin Thursday at 18,824.64
The Canadian dollar poked ahead 0.20 cents to 79.43 cents U.S.
The largest percentage gainers on the TSX were automobile parts maker Linamar, which acquired $10.52, or 13.2%, to $90.53, and food products distributor Premium Brands Holdings, which jumped $7.80, or 7%, to $118.61, after both reported fourth-quarter results.
Ivanhoe Mines fell 75 cents, or 9.7%, the most on the TSX, to $6.95, after the miner arranged private placement of convertible senior notes.
The second biggest decliner was Bausch Health Companies down 49 cents, or 1.2%, to $40.97, after the firm named insider Sam Eldessouky as its new finance chief.
British American Tobacco said on Thursday it will buy a nearly 20% stake in Canada-based cannabis producer Organigram for about 126 million pounds ($175.81 million U.S.) as it diversifies beyond its main tobacco business. Organigram ballooned $1.08, or 29.8%, to $4.70.
TD Securities raises target price on Advantage Oil & Gas to $3.25 from $2.50. Advantage shares took on 12 cents, or 4.6%, to $2.76.
TD Securities raises target price on Boardwalk REIT to $48.00 from $47.00. Boardwalk units settled 28 cents to $37.51.
CIBC raises the rating on Canadian Western Bank to outperform from neutral. Western Bank shares dipped nine cents to $34.40.
ON BAYSTREET
The TSX Venture Exchange moved ahead 6.71 points, to 974.94.
All 12 TSX subgroups gained ground in the first hour, with consumer discretionary stocks up 1.6%, information technology clicking 1.5% higher, and energy rumbling 1.4%.
ON WALLSTREET
U.S. stocks climbed on Thursday led by technology names as investors flocked into their growth darlings again as fears of inflation and rates eased.
The Dow Jones Industrial Average vaulted 206.56 points at 32,503.58
The S&P advanced 34.06 points to begin the day at 3,932.87.
The NASDAQ Composite popped 241.89 points, or 1.8%, to 13,310.72, amid a rotation back into tech shares. Tesla was up 4%. Apple, Facebook and Netflix all jumped at least 2%, while Amazon, Alphabet and Microsoft shares were also higher.
The NASDAQ dipped into correction territory on Monday, falling more than 10% from its recent high. Now the tech-heavy benchmark is about 6% off its record high.
House Democrats passed a $1.9-trillion coronavirus relief bill Wednesday, sending it to President Joe Biden, who is expected to sign it into law Friday.
The economic reopening, coupled with additional fiscal stimulus, accelerated the rotation into more cyclical sectors, such as energy. The S&P 500 energy sector has been the biggest winner this year, up 40% so far.
On the data front, investors cheered a slightly better-than-expected reading on weekly jobless claims. The U.S. Labor Department reported that first-time filings for unemployment insurance in the week ended March 6 totaled a seasonally adjusted 712,000, below the Dow Jones estimate of 725,000.
Prices for 10-Year Treasurys dipped, raising yields to 1.54% from Wednesday’s 1.52%. Treasury prices and yields move in opposite directions.
Oil prices regained 85 cents to $65.29 U.S. a barrel.
Gold prices nicked up a dime to $1,721.90.
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