TSX notches longest monthly winning streak in three years
Reuters
Published Feb 29, 2024 07:41
Updated Feb 29, 2024 16:55
By Fergal Smith
(Reuters) -Canada's main stock index rallied on Thursday, adding to its monthly gain, as investors cheered results from Canadian Natural Resources (TSX:CNQ) and the major banks as well as domestic data showing stronger-than-expected economic growth.
Toronto Stock Exchange's S&P/TSX composite index ended up 119.84 points, or 0.6%, at 21,363.61.
For the month, it was up 1.6%, its fourth straight monthly gain. That's the longest monthly winning streak since 2021.
"Today's all about CNQ," said Barry Schwartz, portfolio manager at Baskin Financial Services. "The company has become a dividend king."
Shares of Canadian Natural Resources jumped 5.1% after the company beat estimates for fourth-quarter profit on record production, and raised its quarterly dividend by 5%.
The energy sector rose 1.9%, while heavily weighted financials added 0.7% after TD Bank (TSX:TD) and Canadian Imperial Bank of Commerce reported better than expected earnings. TD shares added 1.1% and CIBC (TSX:CM) was up 2.2%.
"There's a little sigh of relief that the (banks') outlooks aren't worsening yet," Schwartz said.
The Canadian economy exceeded expectations in the fourth quarter, with GDP expanding at an annualized rate of 1%. Investors also weighed U.S. inflation data that kept a midyear interest rate cut from the Federal Reserve on the table.
The materials sector, which includes precious and base metals miners and fertilizer companies, contributed to the rally. It gained 1% as gold and copper prices rose.
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Written By: Reuters
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