TSX ends up 100.90 points, or 0.5%, at 20,700.50
Energy rises 2.5%; oil settles 1.1% higher
Financials advance 1.1%
Forest products companies rally
Jan 26 (Reuters) - Canada's main stock index posted its
highest closing level in more than seven months on Thursday as
investors grew more hopeful that the market had bottomed and
looked for positive catalysts, such as the reopening of China's
economy, to spur further gains.
The Toronto Stock Exchange's S&P/TSX composite index
ended up 100.90 points, or 0.5%, at 20,700.50, its
highest closing level since June 8.
It follows a decline of 8.7% for the TSX in 2022, along with
losses for many other major indices, as central banks raised
interest rates aggressively to tackle soaring inflation.
"What seems to becoming more apparent is that the market
bottomed out in October," said Colin Cieszynski, chief market
strategist at SIA Wealth Management.
"That pullback we had in December was mostly related to
tax-loss selling because as soon as the tax-loss trading
deadlines passed, the market started going back up again."
Tax-loss selling is a strategy in which investors sell
stocks that have fallen in value, creating a loss that can be
used to offset capital gains elsewhere.
Wall Street also ended higher as investors grappled with an
onslaught of economic data and a string of mixed corporate
"Generally earnings have been ok, people are preparing for
China to reopen and markets have been trending upwards,"
Optimism about the reopening of China's economy and data
showing the U.S. economy expanded at a faster-than-expected pace
in the fourth quarter helped boost the price of oil. It settled
1.1% higher at $81.01 a barrel, while the Toronto market's
energy sector was up 2.5%.
Technology rose 0.9% and heavily-weighted financials ended
Forest products companies were among the strongest gainers,
with Interfor Corp climbing 10.4% and Canfor Corp
ending nearly 9% higher.
(Reporting by Fergal Smith; Additional reporting by Shashwat
Chauhan in Bengaluru; Editing by Shailesh Kuber and Alistair