TSX surged by 5 percent after an eight-month low the week before
The Canadian TSX Index surged on Monday to its highest point in a week, with a rise in the bullion price and Valeant Pharmaceuticals stock rising (after impressive quarterly results).
The TSX index rose by over 5 percent after dropping to an eight-month low the previous week. The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed , at 14,337.77, up 110.09 points (by 0.77 percent). Every major sector on the index was higher.
The gold-mining sector was up by 2.5 percent. Goldcorp Inc increased by 1.9 percent, up to C$26.33, and Barrick Gold Corp was up 2.1 percent, to C$15.43.
Energy producers also rose, with increases in the price of U.S. crude oil. Suncor Energy Inc was up 1 percent to C$38.10, and Talisman Energy Inc jumped by 2.2 percent to C$7.52.
The US dollar weakened which has increased the physical demand for bullion and pushed the price of the commodity up.
The TSX increased depite shares of Canadian Pacific Railway Ltd falling by 1.5% after the company said it had ended talks with CSX Corp about a merger deal.
Marcus Xu, president and portfolio manager at M.Y. Capital Management Corp in Vancouver, told Reuters:
“The market is generally in a buy-the-dip mode,” adding that “there are always people with cash on the side looking for deals.”
“The market is nervous. It’s still going to swing back and forth,”
The Toronto equities market is expended to end higher this year, even with the recent selloff, especially as “there’s some good value on the TSX,”