logo
Plus   Neg
Share
Email

TSX Edges Up Marginally, Extends Gains To 5th Session

The Canadian stock market swung between gains and losses right through the session on Wednesday, but eventually managed to close marginally higher, extending its winning run to a fifth session.

Investors largely stayed cautious, digesting the data on Canadian consumer price inflation and the U.S. Federal Reserve's monetary policy statement were also tracking, besides tracking the trend in commoditiy prices.

The benchmark S&P/TSX Composite Index ended up 8.44 points, or 0.05%, at 16,511.79. The index moved in a very narrow range of about 36 points, scaling a low of 16,492.34 and a high of 16,529.58 in the session.

Information technology stocks gained, contributing significantly to market's positive close. The Capped Information Technology Index ended nearly 2% up.

Shopify Inc. (SHOP.TO) jumped nearly 7% after the company announced a series of new products and features, including the use of machine learning to time deliveries from its Shopify Fulfillment Network. The company which held its annual Shopify Unite investor day in Toronto, also debuted the next generation of its in-store point-of-sale system at the event.

Blackberry (BB.TO) and Exfo Inc. (EXC.TO) gained 1.9% and 1.45%, respectively.

CannTrust Holdings (TRST.TO) ended stronger by about 6.75% after the company announced that it is establishing operations in the United States, starting in the State of California. CannTrust has signed a non-binding letter of intent that will provide access to over 3,000 acres of farmland for hemp production with Elk Grove Farming Company, LLC, to secure low-cost hemp with high cannabidiol content.

Energy stocks Kelt Exploration (KEL.TO) and Enerplus Corporation (ERF.TO) gained about 2% and 1%, respectively.

Mining stock First Quantum Minerals (FM.TO), healthcare stock Aurora Cannabis (ACB.TO) and energy shares Cenovus Energy (CVE.TO) and Canadian Natural Resources (CNQ.TO) declined sharply.

In economic news, Data from Statistics Canada showed that the consumer price inflation rose 0.3% on a seasonally adjusted monthly basis in May, unchanged from the previous month. Economists has expected a 0.1% increase.

Core inflation, excluding food and energy, ticked up 0.3% in May, after rising 0.2% in April.

On an annual basis, consumer prices rose an unadjusted 2.4% from 2% in April. The rate was forecast to increase by 2.1%.

In the U.S. market, the major averages ended with moderate gains, after the Fed suggested the next move for rates is likely to be lower. Buying interest, however, was somewhat subdued amid signs the rate cut could be delayed until next year.

The Dow edged up 0.2%, the Nasdaq climbed 0.4% and the S&P 500 rose 0.3%.

Stock markets across the Asia-Pacific region moved sharply higher on Wednesday, while the major European markets turned in a mixed performance.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT
>