Canada’s primary stock index rose to a record high on Thursday as strengthening precious metal prices boosted mining stocks.
The Toronto Stock Exchange’s S&P/TSX composite index jumped 263.97 points — or 1.1% — to 23,475.14, surpassing a previous record set on 26 August.
“The TSX is firing on all cylinders today,” Elvis Picardo, a portfolio manager at Luft Financial, says.
“The materials group is leading the charge . . . led by the precious metals miners. I think investors are finally waking up to this stealth rally in gold and silver.”
The price of gold increased 1.85% to US$2,558.88 ($3,805) an ounce, marking a 24% rise since the start of the year, while silver was up 4.42% to US$29.94 an ounce. The materials sector generally, which includes mining stocks and fertiliser companies, rose 4.1%.
Earlier in the day, gold futures had climbed to an all-time high of US$2,580.60, boosted by expectations of an interest rate cut by the US Federal Reserve.
“We have seen concerted buying on both sides of the border this week,” Picardo adds.
“That would indicate that investors are quite confident about the US soft landing scenario playing out.”
For other metals, copper futures increased 1.2% on signs of firmer demand in China and aluminium futures rose 1.5%. Meanwhile, iron ore futures jumped 0.8% to US$93.06 a tonne as prospects of improved seasonal demand in China outweighed concerns over the country’s economic recovery.
Overall, all 10 major sectors on the TSX ended higher, with industrial adding 1.1% and energy up 0.8%.
Earlier this week, TMX Group, which operates the TSX and TSX Venture Exchange, released its sixth annual TSX30 report, which ranks the 30 best-performing companies based on dividend-adjusted share price performance over a three-year period.
At the top of the list is Hammond Power Solutions (TSX:HPS.A), which enables electrification through its range of dry-type transformers, power quality products, and related magnetics. Ove the three-year period, the company’s dividend-adjusted share price rose 928%.
Across the full list, the TSX30 companies represent more than C$380 billion ($416 billion) in market capitalisation, having added C$210 billion during the three years and notching an average dividend-adjusted share price gain of 234%.
Write to Oliver Gray at Mining.com.au
