🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Toronto market ends higher, led by 'high-beta' stocks

Published 11/11/2024, 09:36 AM
Updated 11/11/2024, 04:45 PM
© Reuters. FILE PHOTO: 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/File Photo
GSPTSE
-

By Fergal Smith

(Reuters) -Canada's main stock index edged higher on Monday as investors remained bullish following the U.S. presidential election, but gains were held in check by a sharp decline in gold mining shares.

The S&P/TSX composite index ended up 29.88 points, or 0.1%, at 24,789.28, moving closer to the record closing high it posted last Thursday.

"The TSX is on a roll today, building on a rally sparked by Donald Trump's election victory," said Brandon Michael, senior investment analyst at ABC Funds.

"Financial services, technology, and industrials are leading the market higher. These are high-beta, risk-on sectors - which is exactly what you want to see in a bullish environment for stocks."

Expectations for lower corporate taxes and deregulation under U.S. President-elect Donald Trump have helped boost stocks globally in recent days.

High-beta stocks include stocks that are more volatile than the market as a whole.

Financials, the most heavily weighted sector on the TSX, rose 0.9% and technology was up 1.9%. Shares of e-commerce company Shopify Inc (NYSE:SHOP) climbed 3.4% ahead of the release of its quarterly earnings on Tuesday.

"A big winner of Trump's election victory is the U.S. dollar, which has strengthened significantly, and that is a major headwind for commodities," Michael said.

© Reuters. FILE PHOTO: 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/File Photo

The U.S. dollar climbed to a four-month high against a basket of major currencies, while gold and copper prices fell.

The materials sector, which includes metal mining shares and fertilizer companies, was down 4.1%. Energy was little changed, declining 0.04%, as oil settled 3.3% lower at $68.04 a barrel.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.