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TSX ends higher, wraps up week with gains

Published 02/23/2024, 07:31 AM
Updated 02/23/2024, 04:31 PM
© Reuters. The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren
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(Reuters) -Canada's main stock index gained on Friday, wrapping up the week on a positive note, helped by gains in material and tech stocks.

The Toronto Stock Exchange's S&P/TSX composite index was up 95.07 points, or 0.45%, at 21,413.15.

The index hit its highest level since April 2022 and posted a weekly gain after a tech-fuelled rally in the previous session.

The materials sector gained 1.3% helped by higher gold and nickel prices. [GOL/]

Heavyweight financials rose 0.6%, boosted by a 4.5% gain in investment manager CI Financial, whose fourth-quarter profit beat estimates.

Technology stocks were 1.3% higher, powered by a 17% surge in Docebo after the software company's fourth-quarter results beat analysts' estimates.

"These technical positives underscore our longstanding belief that we are in the midst of a continuing bull market for equities. While we anticipate periodic volatility, stocks should continue to sawtooth their way to higher levels," said Brandon Michael, senior investment analyst at ABC Funds.

Energy shares, however, were among the biggest drag on the index, with a 0.2% decline, tracking a drop in oil prices on receding rate cut bets after the policymaker's comments. [O/R]

U.S. Federal Reserve Governor Christopher Waller said on Thursday U.S. Federal Reserve policymakers should delay interest rate cuts by at least another couple more months.

Quarterly earnings from banks, including Bank of Montreal, Bank of Nova Scotia and the Royal Bank of Canada will also be on the radar next week, with financials having the heaviest weight on the index.

© Reuters. The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren

"People will be looking to see how is the Canadian economy impacting the banks. If the bank results come in good, that means the Canadian economy is doing reasonably well and there's less pressure on the Bank of Canada to cut rates", said Colin Cieszynski, chief market strategist at SIA Wealth Management.

Among other stocks, real estate intelligence service provider Altus Group climbed 8% and Hudbay Minerals (NYSE:HBM) gained 4.7% after upbeat quarterly profit.

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