A Toronto Stock Exchange (TSX) stock information sign is seen in Toronto June 23, 2014. REUTERS/Mark Blinch/File Photo Acquire License Rights
- Energy drives TSX upleg
- Teck Resources tops the TSX
- Toronto shares up 0.28%
Aug 17 (Reuters) – Toronto shares rallied on Thursday, fueled by energy stocks, while Teck Resources rose sharply after reports that Indian company JSW Steel is considering taking a majority stake in the Canadian miner’s steel coal business.
As of 10:09 am ET (1409 GMT), the Toronto Stock Exchange’s S&P/TSX Composite Index (.GSPTSE) was up 55.7 points, or 0.28%, to 19,954.77, but was still hovering around its one-month low.
Selling in Canadian equities accelerated this week after Tuesday’s data showed stronger-than-expected CPI inflation, stoking fears of more rate hikes by the Bank of Canada (BoC).
“(Inflation data) is definitely putting pressure on the BoC to at least tighten hawkishness,” said Brooke Thackray, research analyst at Horizons ETFs. “But I think they’re probably going to pause even with that (inflation) number.”
Index-heavyweight energy stocks (.SPTTEN) rose 1.8%, buoyed by gains in crude oil prices on Thursday, after the People’s Bank of China tried to stem a rising tide of pessimism about the country’s property market and broader economy.
Teck Resources (TECKb.TO) shares rose over 4% after Bloomberg reported that Indian company JSW Steel (JSTL.NS) is considering acquiring a 75% stake in Elk Valley Resources. The stock was the biggest gainer on the benchmark index.
Gains in the Canadian miner and precious metals prices lifted materials stocks (.GSPTMT), up 0.7%. MET/
Meanwhile, July Federal Reserve minutes on Wednesday showed that “most” policymakers continued to prioritize the fight against inflation, with “some participants” citing the risks to the economy of raising interest rates too much.
A report by auditing firm KPMG showed that investment in Canada’s fintech sector fell by less than half in the first six months of 2023 compared to a year earlier.
Information Technology (.SPTTTK) stocks fell 0.6%.
Reporting by Siddarth S in Bengaluru; Edited by Pooja Desai and Krishna Chandra Eluri
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