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CANADA STOCKS-TSX posts record high as investors eye soft economic landing
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CANADA STOCKS-TSX posts record high as investors eye soft economic landing
Mar 21, 2024 2:03 PM

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TSX ends up 0.2% at 22,087.26

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Eclipses March 2022 record closing high

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Financials advance 0.6%

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Alimentation Couche-Tard ( ANCTF ) drops on earnings miss

(Updates at market close)

By Fergal Smith

March 21 (Reuters) - Canada's main stock index rose to a

record high closing level on Thursday, helped by gains for

heavily-weighted financial shares, as investors cheered recent

signs that inflation is cooling and the economy is avoiding a

recession.

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

ended up 41.55 points, or 0.2%, at 22,087.26,

squeaking past the previous record closing high of 22,087.22

that was set in March 2022.

"The overall data in North America shows that we will

probably avert a recession which is what most investors feared

in the better part of last year," said Stan Wong, portfolio

manager at Scotia Wealth Management.

"More data that supports a soft landing in the economy and

therefore more certainty of some rate cuts coming from the

central banks this year ... that's helping the markets."

Bank of Canada Deputy Governor Toni Gravelle said February's

inflation figures were "very encouraging", adding the central

bank would look at a broader set of data before its next

interest rate announcement on April 10.

Money markets expect both the Bank of Canada and the Federal

Reserve to cut three times by the end of the year.

"We are seeing a nice broadening participation in all types

of sectors, beyond just technology, in the last three months,"

Wong said.

The Toronto market has a heavy concentration in sectors that

are sensitive to the economic outlook, such as resource shares,

that have benefited from the recent rally in commodity prices,

as well as industrials and financials.

Financials, which account for 29% of the Toronto market,

rose 0.6%, while real estate and utilities, two sectors that

could particularly benefit from lower borrowing costs, also

posted gains.

Shares of Alimentation Couche-Tard ( ANCTF ) were a drag,

falling 4.2% after the multinational operator of convenience

stores missed earnings expectations.

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