Salem Radio Network News Thursday, December 8, 2022

Business

TSX extends gains on strong Canada Goose earnings

By Johann M. Cherian

(Reuters) – Canada’s main stock index on Thursday extended gains on strong results reported by Canada Goose on resilient luxury demand, a day after softer-than-expected U.S. inflation data lifted market sentiments.

Canada is expected to release inflation data early next week.

At 9:59 a.m. ET (1359 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 170.38 points, or 0.86%, at 20,056.32. The index breached 20,000 points for the first time since June.

“What we’re seeing in the markets today is continued gains following yesterday’s consumer price inflation report, a sense that perhaps maybe the Central bank in the U.S. doesn’t have to tighten as quickly as they have previously,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.

Element Fleet Management Corp jumped 13% after the fleet management firm also beat earnings estimates, while the financials sector gained 0.9%.

Keeping gains in the sector in check was a 0.2% decline in shares of Canada’s largest life insurer Manulife Financial Corp, which reported only a marginal beat in earnings expectations.

Luxury goods company Canada Goose jumped 10% on strong quarterly results, benefiting from inflation-resilient consumer demand.

The energy sector climbed 2.6% as Suncor Energy added nearly 2% as it considers spinning off its Petro-Canada gas business that accounts for 13% of Canada’s retail fuel market.

If the deal is given a green light by Canada’s antitrust body, it could reap over $8 billion and boost returns to unhappy shareholders.

Suncor’s poor safety record and lackluster stock performance prompted a demand for changes from activist Elliott Investment Management, following which it replaced its chief executive officer in July.

U.S. crude prices were up 1.6% a barrel, while Brent crude added 1.3%. [O/R]

The industrials sector rose 0.1%.

(Reporting by Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli)

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