S&P/TSX composite up slightly as tech sector pulls back, energy makes gains

CALGARY – Canada’s essential inventory index eked out one other file excessive on Friday as losses within the expertise sector had been offset by positive aspects within the power sector.

The S&P/TSX composite index closed up simply 3.76 factors at 21,216.15, however particular sectors noticed extra particular person motion, mentioned Greg Taylor, chief funding officer with Function Investments.

“(The market) seemed comparatively flat in the present day, however beneath the floor there was numerous sector rotation occurring,” Taylor mentioned.

The power sector was the most effective performer, gaining 1.32 per cent. The worth of crude oil hit US$84 a barrel Friday after a short sell-off earlier this week. Crude has gained greater than 11 per cent this month alone and greater than 70 per cent because the begin of the yr.

The December crude oil contract was up $1.26 at US$83.76 per barrel and the January pure gasoline contract was up 10 cents at US$5.56 per mmBTU.

Taylor mentioned Canadian power corporations are anticipated to generate numerous free money movement at these commodity costs.

“I feel that’s actually catching the eye of the buyers, who it seems like had actually forgotten concerning the power shares the previous few years,” he mentioned. “It’s a sector that’s doing very properly, however it’s very under-owned. And individuals are beginning to come again to it.”

The worth of gold additionally moved increased Friday, possible on considerations over inflation, Taylor mentioned. The December gold contract was up US$14.40 at US$1,796.30 an oz whereas the December copper contract was down six cents at US$4.50 a pound.

Nonetheless, positive aspects in power in addition to the industrials and supplies sectors had been considerably offset by losses on the expertise aspect. The S&P/TSX capped info expertise index was down 1.83 per cent. Taylor mentioned this may be partly attributed to disappointing quarter outcomes from U.S. tech giants Intel Company and Snap Inc., the mother or father firm of Snapchat.

“Expertise’s an space that’s had a reasonably good run the previous few weeks, however it seems to be prefer it’s beneath stress in the present day and that’s taken down Shopify and among the different Canadian names,” he mentioned.

Shares in Shopify Inc. closed at $1,764.23, down 86.25 factors or 4.66 per cent.

In New York, the Dow Jones industrial common was up 73.94 factors at 35,677.02. The S&P 500 index was down 4.88 factors at 4,544.90, whereas the Nasdaq composite was down 125.50 factors at 15,090.20.

The Canadian greenback traded for 80.93 cents US in contrast with 80.97 cents US on Thursday.

Canadian telecom large Rogers Communications Inc. grabbed headlines this week because of an escalating boardroom combat between the corporate and Edward Rogers, who was eliminated as Rogers chair Thursday however stays chair of the household belief that controls the corporate.

Nonetheless, the corporate’s share value remained comparatively flat, closing at $60.02, down simply 0.28 per cent.

Taylor mentioned the dearth of motion might be an indication that buyers nonetheless anticipate the $26-billion deal Rogers signed earlier this yr to take over rival Shaw Communications Inc to undergo.

“As a lot because the boardroom actions are attention-grabbing, it doesn’t appear to be impacting the share value an excessive amount of,” Taylor mentioned.

This report by The Canadian Press was first printed Oct. 22, 2021.

Corporations on this story: (TSX:GSPTSE, TSX:CADUSD=X, TSX:RCI.B, TSX:SHOP)

S&P/TSX composite up barely as tech sector pulls again, power makes positive aspects Source link S&P/TSX composite up barely as tech sector pulls again, power makes positive aspects

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