Jan 4 (Reuters) – Canada’s main stock index rose on Tuesday, its first day of trading in 2022, as energy shares gained on firmer crude oil prices and worries eased around the Omicron coronavirus variant.
At 9:41 a.m. ET (14:41 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was up 149.43 points, or 0.7%, at 21,372.27.
The energy sector (.SPTTEN) climbed 3.5% as U.S. crude prices were up 0.6% a barrel, while Brent crude added 0.8%.
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Oil prices rose as investors expected OPEC+ producers to stick with their planned increase for February based on indications Omicron would have only a mild impact on demand.
“Its interesting to see Canada play catch up to the U.S. markets which were open yesterday,” said Gregory Taylor, portfolio manager at Purpose Investments.
The S&P 500 (.SPX) and Dow Jones Industrial Average (.DJI) posted closing record highs on the first trading day of the year on Monday.
“We see pretty good risk-on within Europe and other parts of the world and we’ll see if Canada participates,” Taylor added.
Adding to gains were healthcare stocks (.GSPTTHC) rising 1.9%, as major pot producers Aurora Cannabis Inc (ACB.TO), Cronos Group Inc (CRON.TO) and Canopy Growth Corp (WEED.TO) added more than 4% each.
The financials sector (.SPTTFS) gained 1.4%, while the industrials sector (.GSPTTIN) rose 0.8%.
The benchmark equity index gained 22% in 2021, its best yearly performance since 2009, supported by massive stimulus, vaccine rollouts and hopes of global economic recovery.
The materials sector (.GSPTTMT), which includes precious and base metals miners and fertilizer companies, lost 0.4%.
On the economic front, producer prices in Canada rose by 0.8% in November from October on higher prices for ammonia and chemical fertilizers, Statistics Canada said.
HIGHLIGHTS
The TSX posted nineteen new 52-week highs and no new lows.
Across all Canadian issues there were 85 new 52-week highs and 22 new lows, with a total volume of 49.31 million shares.
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Reporting by Amal S in Bengaluru; Editing by Ramakrishnan M.
Our Standards: The Thomson Reuters Trust Principles.
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