TSX rebounds after dismal week
After a dismal week the TSX has rebounded strongly, with tech and energy stocks giving it a boost back up.
Blackberry shares went up by 5 percent after reporting earnings that were higher than what most analysts had forecast, closing by 56 cents more, at $11.44 per share.
The company has adjusted loss of two cents per share in its latest quarter, which is better than a loss of 16 cents per share that most had predicted.
Bombardier shares increased by 3.7 percent, following news that Macquarie AirFinance will be buying 40 of its new CSeries jets (with an open option to buy 10 more).
The S&P/TSX composite index went up by 133.20 points to 15,026.77.
The week was very volatile for markets, with the Toronto exchange falling by more than 200 points on Thursday.
What caused the sudden drop on Thursday puzzled investors, as drops like that are typically associated with political turmoil or very poor earnings reports. However, there was almost none of that.
Kevin Headland of Manulife Asset Management, said:
“I think it was a reaction and an overreaction. If you look at the fundamentals, there is no reason for a major sell-off.”
“It might be because people are still coming back from the summer slow season and are reallocating their portfolios. But today’s immediate snapback shows that the declines were not based on fundamentals.”
However, some analysts say that it was the rally of the U.S. dollar that weighed on commodity prices, affecting shares of Canadian natural resource companies.
Wall Street also did well after severe losses from the previous day, with markets benefiting from the latest U.S. GDP figures.
The Dow Jones industrials increased by 167.35 points to 17,113.15, the Nasdaq went up by 45.44 points to 4,512.19 and the S&P 500 index increased by 16.86 points to 1,982.85.