Ivrnet Inc. (IVI) Is Yet to See Trading Action on Jun 20

Cornelia Mascio
Giugno 23, 2018

Canada's main stock index closed at a record high Wednesday, boosted by a broad-based rally let by healthcare, energy, and consumer staples stocks.

It also reached an intra-day high of 16,430.720.

The Toronto market, which has seen fairly steady gains since late March, has been boosted especially by an oil price rally that has lifted the energy sector that makes up nearly 20 per cent of the index, said Michael Currie, vice-president and senior investment advisor at TD Wealth.

Kavcic said he doesn't expect the momentum to continue, as he doesn't see oil prices rising much beyond current levels and believes tighter monetary policy and slower credit growth will weigh on Canadian financials.

Cannabis stocks in particular saw a boost Wednesday, after Prime Minister Justin Trudeau said Canadians would be able to legally buy and smoke marijuana starting October 17. Aurora Cannabis Inc. rallied 4.7 per cent, Cronos Group Inc. gained 5.6 per cent and Aphria Inc. rose 4.2 percent.

"It's odd, we had the Canadian economy accelerating through about mid-2017 and the TSX was fading and lagging the USA, and now the economy's really coming off the boil and the TSX is back at a record high", said Robert Kavcic, senior economist at BMO Capital Markets.

The loonie has faced pressure from trade concerns over NAFTA negotiations, but its fall more attributable to increased favour for the US dollar as the Federal Reserve raises rates amid a strong economy. The S&P 500 Index is still trading about 3.6 per cent below its January 26 high.

The loonie was trading for 75.23 cents United States, down from an average value of 75.32 cents U.S. on Tuesday.

The Dow Jones industrial average was down 8.10 points to 24,692.11.

The August crude contract for West Texas Intermediate closed at $65.71 U.S. per barrel, up 81 cents.

The August gold contract closed down US$4.10 at US$1,274.50 an ounce and the July copper contract closed down a penny at US$3.04 a pound.

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