TSX Still in Gaining Mode, on Energy Surge - InvestingChannel

TSX Still in Gaining Mode, on Energy Surge

Canada’s commodity-heavy main stock index kept its momentum going on Monday to nearly a month’s high after energy stocks jumped more than 4%, while Teck Resources surged after rejecting a buyout offer from Glencore.

The TSX gained another 144.29 points noon Monday to 20,244.18.

The Canadian dollar captured 0.40 cents to 74.44 cents U.S.

Teck Resources on Monday rejected an unsolicited acquisition proposal from Glencore Plc, stating rival’s all-stock offer is inferior to its own planner separation. U.S.-listed shares of the Canadian miner rose more than 10%. Teck soared in price $6.96, or 14.1%, to $56.31.

Among other stocks, Quebecor was upgraded by Veritas Research to “buy” from “reduce”, while Scotiabank resumed coverage of miner Pan American Silver Corp with “sector outperform”. Quebecor tacked on five cents a share to $33.46, while those for Pan American recovered 51 cents, or 2.1%, to $25.17.

On the economic front, the Markit Canada Manufacturing PMI for March registered 48.6, down noticeably from 52.4 in February. It was the lowest reading recorded by the index since June 2020 and represented a modest deterioration in operating conditions.

ON BAYSTREET

The TSX Venture Exchange dipped 1.29 points to 632.89.

Eight of the 12 TSX subgroups were lower, with health-care dumping 1.9%, information technology off 1.1%, and real-estate stepping back 0.8%.

The four gainers were led by energy, rumbling 4.8%, while materials seized 2.4%, and gold was brighter by 1.7%.

ON WALLSTREET

The NASDAQ Composite dipped Monday as a spike in oil prices added another threat to an economy already struggling with Federal Reserve rate hikes and recent turmoil in the banking sector.

The Dow Jones Industrials surged 236.10 points to 33,510.25.

The S&P 500 gained 2.68 points to 4,111.99.

The tech-heavy NASDAQ lost 91.15 points to 12,130.76.

The output cut from OPEC+, which is slashing 1.16 million barrels per day, sent oil prices soaring. West Texas Intermediate crude was 6.6% higher, while international benchmark Brent crude climbed 6%.

Marathon Oil jumped $2.15, or 9%, to $26.11, while Halliburton took on $2.15, or 6.8%, to $33.79.

All three major averages were positive in the first quarter, despite turmoil in the banking sector highlighted by the collapse of Silicon Valley Bank in March. The NASDAQ Composite led the way in the quarter with a gain of 16.8% while the S&P 500 rose 7% in the first three months of the year for its second-straight positive quarter. The Dow industrials lagged but still managed to grind out an advance of 0.4%.

The first week of the new quarter is a shortened one for Wall Street, as trading will be closed for Good Friday. However, there will be several key pieces of economic data for investors, including job openings data on Tuesday, ADP private payrolls report on Wednesday and the closely watched monthly jobs report on Friday.

Prices for the 10-year Treasury gained, lowering yields to 3.42% from Friday 3.48%. Treasury prices and yields move in opposite directions.

Oil prices ballooned $4.57 to $80.24 U.S. a barrel.

Gold prices gained $2.15, or 6.8%, to $2,006.20 U.S. an ounce.

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