For the 3rd straight day, Canadian stocks increased, marking its longest winning streak in a month’s time. Apart from the higher than forecasted records from Chinese imports industry, energy producers and banks of Canada advanced too. The benchmark gauge TSX Composite Index jumped up by 68.54 points and is currently at 12552.59. On yesterday, it increased by 1.1%, marking its biggest gain in the last 4 months. It also helped the gauge to erase its losses for 2013. The overall trading volume of today was at par with average of the last 30 days.
According to the Portfolio Manager of ABC Funds, Irwin Michael, China import figures have shown improvement and as a result, people are excited for the commodity side again. As the banks are also showing improvements, investors are coming to terms that the Canadian house market will not be crashing down.
The housing starts in Canada increased for the 2nd straight month in March quite unexpectedly and apart from that, the building permits increased in February as well. This shows that the low borrowing costs are supporting construction. The oil prices also increased by 0.4%, thereby taking it to $94.53 per barrel. Now, oil has been able to erase 0.9% of the losses before the US Federal Reserve released minutes of its last meeting. Following the forecasts for below normal temperatures through April in the western US, natural gas futures increased by 3.6%.
Among companies, the biggest lender of Canada, Royal Bank of Canada increased by more than 2.1%. The Bank of Nova Scotia experienced similar increases as well. The largest producer of gold in the world, Barrick Gold Corp., on the other hand, declined to a 4-year low after a report came out stating that a Chilean court has ordered to halt work at the Pascua Lama mine of the company. Barrick is actually heading towards its lowest close since October, 2008. The company officially has not made any comment regarding the court’s decision.
The S&P – TSX Financials index advanced by 1.4%, marking its biggest advance in last 9 months. Husky Energy increased by 3% and each share is priced at C$30 now. On the other hand, Arc Resources increased by 3.4% to reach to C$27.50.
After signing a deal with Porter Airlines to sell 30 CSeries Jets, Bombardier Inc. went ahead by 0.7%, taking each share’s price to C$4.10.