S&P/TSX Composite Index Climbs Nearly 150 Points

TORONTO — Canada’s main stock index closed higher on Monday, gaining almost 150 points amid light trading activity as investors prepare for the Christmas break. The S&P/TSX composite index settled at 24,748.98, up 149.50 points.

Kevin Burkett, a portfolio manager at Burkett Asset Management in Victoria, B.C., described the trading day as a "quiet pre-Christmas Day of trading." Despite the calm atmosphere, he advised investors to stay vigilant, as significant shifts in the macroeconomic landscape could occur during this period.

Burkett noted that both fiscal and monetary policies appear to be at odds in this post-pandemic environment. He indicated that potential changes in fiscal policy might have substantial implications for the market in both the short and long term.

On the economic front, Statistics Canada reported a 0.3 percent increase in economic growth for October, largely fueled by the mining, quarrying, and oil and gas extraction sectors.

Meanwhile, the Canadian dollar continued to decline, trading at 69.47 cents USD, down from 69.61 cents USD on the previous Friday.

In sector-specific performance, the telecommunications sector saw some of the largest declines, which Burkett attributed to year-end tax loss selling. Notably, Rogers Communications faced a lawsuit from Competition Bureau Canada over allegedly misleading claims about its infinite wireless plans, which pushed its stock down by 0.7 percent. BCE and Telus also reported declines, with shares down 1.4 percent and 0.9 percent, respectively.

Burkett remarked that it had been a challenging year for the communication services sector, hinting at ongoing struggles within the industry.

On the U.S. side of the markets, gains were observed across major indexes ahead of the holiday season. The Dow Jones industrial average rose by 66.69 points to close at 42,906.95. The S&P 500 index increased by 43.22 points to reach 5,974.07, while the Nasdaq composite climbed 192.29 points to finish at 19,764.89.

In commodity markets, the February crude oil contract decreased by 22 cents, settling at US$69.24 per barrel. The February natural gas contract also fell, down six cents to US$3.35 per mmBTU. Similarly, the February gold contract declined by US$16.90, closing at US$2,628.20 per ounce, while the March copper contract saw a minor dip of one cent, ending at US$4.09 per pound.

Stocks, Market, Economy