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CANADA STOCKS-TSX edges closer to record high as resource shares advance
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CANADA STOCKS-TSX edges closer to record high as resource shares advance
May 7, 2024 1:58 PM

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TSX ends up 0.1% at 22,290.62

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Index notches a four-week high

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Energy rises 0.5%

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Materials group adds 0.9%

(Updates at market close)

By Purvi Agarwal and Fergal Smith

May 7 (Reuters) - Canada's main stock index rose for a

fifth straight day on Tuesday, edging closer to a new record

high, as investors grew confident that a rally in

heavily-weighted resource shares could be sustained.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 31.15 points, or 0.1%, at 22,290.62,

extending a string of gains since last Wednesday. It was the

highest closing level for the index in four weeks, when it

posted a record high of 22,361.78.

Combined, the energy and materials sectors account for 32%

of the TSX's weighting while financials account for 29%.

"If you have two out of those three categories that are

working, you've got a good market," said Philip Petursson, chief

investment strategist at IG Wealth Management.

"I would say that is what has been the trend over the past

little while and in our view can continue to be the trend

through the summer months."

The energy sector added 0.5% and the materials

group, which includes metal miners and fertilizer

companies, was up 0.9%.

"Economically, we are in a decent environment from the

global perspective ... we have steady growth that is supportive

of markets higher but it is also supportive of commodity prices

at these levels if not higher as well," Petursson said.

The move toward record highs came ahead of the release this

week of earnings from some major companies, such as Suncor

Energy Inc ( SU ), Manulife Financial Corp ( MFC ) and Shopify

Inc. ( SHOP )

The declining sectors on Tuesday included real estate

, which fell 0.7%, and consumer staples,

which ended 0.5% lower.

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