- Web Desk
- 4 Hours ago
TSX gains on energy, material stock boost
- Web Desk
- Aug 12, 2023
TORONTO, (Reuters): Toronto stocks (TSX) ended higher on Friday, lifted by energy and material stocks, recovering from choppy trading after stronger-than-expected US producer price data prompted investor worries over sticky inflation in the world’s largest economy.
The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was up 64.76 points, or 0.32 per cent, at 20,407.64. The index was set to snap two consecutive weekly declines.
Data showed US PPI increased 0.2 per cent in June. On an annual basis, PPI increased 0.8 per cent through June, while economists polled by Reuters had forecast a 0.7 per cent rise.
US consumer prices increased moderately in July at 3.2 per cent, up from 3.0 per cent in June, data showed on Wednesday, but core inflation continued to remain sticky, which worried investors on the Fed’s rate hike plans for the rest of 2023.
“Today’s numbers partly counter the recent trend we have seen with core inflation easing,” said Angelo Kourkafas, investment strategist at Edward Jones Investments. “They didn’t necessarily provide the confidence that investors were hoping for.”
The S&P 500 and the Nasdaq Composite fell to post their second straight weekly losses, as hotter-than-expected US producer prices data pushed Treasury yields higher and sank rate-sensitive megacap growth stocks.
Rate-sensitive technology stocks (.SPTTTK) lost 0.3 per cent after the data.
Utilities (.GSPTTUT) shed over 0.6 per cent as shares of Northland Power (NPI.TO) fell over 6 per cent, after the power producer reported a drop in quarterly net income. The stock was the worst performer on the benchmark index.
Satellite operator Telesat (TSAT.TO) closed up 17.5 per cent after it gave space tech firm MDA (MDA.TO) a C$2.1 billion contract to build 198 satellites for its low-earth orbit program. Shares of MDA gained 10.42 per cent.