Toronto stock market edge higher as mining shares rise
The main Canadian stock index closed higher on Thursday. Metal mining shares led the way, but gains were limited. Investors awaited the employment data from both sides of border, and prepared for a potentially volatile financial year.
The S&P/TSX Composite Index ended the day up 21,68 points or 0.1% at 25,073.36, adding on to yesterday's gains.
The trading volume was lower than usual due to the U.S. Stock Market being closed on a day of national mourning in honor of the former President Jimmy Carter.
Elvis Picardo is the portfolio manager of Luft Financial, iA Private Wealth.
It feels like the calm prior to the storm. I think that investors around the world are probably preparing themselves for a volatile 2025.
The TSX has seen a gain of almost 18% since 2024, but sentiments have cooled from a peak reached in December due to a hawkish Federal Reserve and the threat U.S. tariffs.
The Federal Reserve and Bank of Canada could be able to predict future interest rate reductions based on the U.S. employment data and Canadian unemployment figures due Friday.
Economists predicted that Canada's economy would add 25,000 new jobs in December, and that the unemployment rate would increase to 6.9% in December from 6.8% in Novembre.
Materials, which includes metal mining companies, fertilizer companies, and shares of metal-mining companies, increased 1.5% to its highest level since December 12, as gold prices and copper prices rose.
The industrial sector was a drag on the market, with a 0.6% decline, mainly due to railroad stocks losing ground and utilities ending 0.5% lower.
Canadian Natural Resources expects to see production increase by 12% in 2025 and capital expenditures rise by 13.5%, as they bet on higher demand due to tight oil supply.
The shares of the company were down by 0.2%. Reporting by Fergal Mathur and Ragini Mathur in Bengaluru, editing by Barbara Lewis and Alistair Bell.
(source: Reuters)
