In the Toronto stock market, stocks made gains on Tuesday, with financials and the mining and energy sectors leading the way. This positive movement was primarily driven by the rise in oil prices and other resources.
The market initially dipped at the open but rebounded by midday. The latest data revealed that inflation unexpectedly eased last month, which has strengthened the argument for the central bank to maintain interest rates when it meets next week. This development aligns with the signs of a faltering economy.
The S&P/TSX Composite Index recorded a 0.6% increase, reaching 19,730.87, while the blue-chip S&P/TSX 60 experienced a 0.5% uptick, settling at 1,186.46.
Notable among the major banks were Toronto-Dominion Bank, which saw gains of 0.8%, and Canadian Imperial Bank of Commerce, which recorded a 0.75% increase. In the resources sector, Barrick Gold gained 2.2%, Teck Resources saw a 1% increase, and Imperial Oil recorded a 0.3% uptick.
Other significant market movements include:
Total Energy Services: The Calgary-based drilling and transportation services company announced its plans to repurchase up to 5% of its shares over a one-year period. As a result, its shares were up by 0.4% at C$9.12.
Supremex: The envelope and paper-packing manufacturer is anticipating annual cost savings of roughly C$1.5 million ($1.1 million) while undergoing a restructuring process that involves closing one of its facilities to enhance operational efficiency. However, this move led to a slight decrease of 0.2% in its shares, which are valued at C$4.33.
In conclusion, Toronto-traded stocks demonstrated positive momentum on Tuesday, driven by various sectors enjoying gains. The latest data on inflation and the overall economic indicators suggest that the central bank will likely maintain interest rates during its upcoming meeting.