S&P/TSX composite closes up as industrial, metal stocks rise in ‘floating pattern’

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Economy Nouvelles

Stock Market,Stocks,TSX

Canada’s main stock index stayed nearly flat Wednesday as shares bobbed along in what one portfolio manager calls a “floating pattern.”

The S&P/TSX composite index crept up 5.42 points to 21,793.90 on the strength of the base metal and industrial sectors while weighed down by losses in energy and telecoms.

“It’s not really like we’re in a holding pattern — it’s more of a floating pattern,” said Stephen Duench, vice-president and portfolio manager for AGF Investments Inc.Holding patterns are steady, while floating suggests more ups and downs, he clarified.Duench pointed to chipmaking giant Nvidia, which saw hundreds of billions of dollars wiped from its valuation in recent days, followed by a nearly eight per cent gain on Tuesday that boosted the Nasdaq.

Deutsche Bank revised its stance on Toronto-based First Quantum Minerals on Wednesday, boosting the stock rating to buy from hold and triggering a seven per cent bump in the share price that drove a base metal sector increase.“The copper story has definitely caught the generalist investor’s attention, and obviously caught the attention of some global banks,” Duench said.

Figures expected Friday on Canada’s gross domestic product could also move those markets. Should economic output lag behind projections, expectations for more cuts to the benchmark interest rate from the Bank of Canada over the next 18 months will likely rise even higher.

 

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S&P/TSX composite closes up as industrial, metal stocks rise in ‘floating pattern’Canada’s main stock index stayed nearly flat Wednesday as shares bobbed along in what one portfolio manager calls a “floating pattern.” The S&P/TSX composite index crept up 5.42 points to 21,793.
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