TSX eyes best day in 2 weeks on energy boost

  • 12/21/2021
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Dec 21 (Reuters) - Canada"s main stock index rose on Tuesday and was on track for its best session in two weeks, as energy shares gained on firmer crude prices and short-covering ahead of the holiday season. At 9:41 a.m. ET (1441 GMT), the Toronto Stock Exchange"s S&P/TSX composite index (.GSPTSE) was up 226.66 points, or 1.1%, at 20,764.88, rebounding from a three-week low in the previous session The energy sector (.SPTTEN) climbed 2.7% as U.S. crude prices were up 2.8% a barrel, while Brent crude added 2.5%. Global equities rose on Tuesday as investors weighed up how badly the Omicron coronavirus variant would hit the global economy, with the dollar softening as appetite for riskier assets made a cautious return. "I think the markets really oversold in the short term more than anything else as we had a really rough week last week and down yesterday. And now people are now starting to step back, thinking that we could support as there is some good valuation out there," said Gregory Taylor, portfolio manager at Purpose Investments. Adding further gains were the Toronto-listed technology stocks (.SPTTTK), up 1.8%, and healthcare stocks, up 2%, as pot producers including OrganiGram Holdings Inc (OGI.TO), Tilray Inc (TLRY.TO), Cronos Group Inc (CRON.TO) bounced back from previous session"s tax-loss selling. The benchmark equity index has gained 17.8% so far this year, but retreated 5.8% since hitting a record high in November as increasing Omicron cases and concerns around rising prices dented investors appetite for riskier assets. The materials sector (.GSPTTMT), which includes precious and base metals miners and fertilizer companies, added 1.0% as gold prices firmed helped by a dip in the U.S. dollar. On the economic front, Canadian wholesale trade most likely rose 2.7% in November from October, led by higher sales in the building materials and supplies subsector, Statistics Canada said in a flash estimate. HIGHLIGHTS The TSX posted three new 52-week highs and one new low. Across all Canadian issues there were five new 52-week highs and four new lows, with total volume of 25.09 million shares. Reporting by Amal S in Bengaluru; editing by Uttaresh.V

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