TSX nears its record high as energy, bank shares rise

Mon Jun 16, 2014 5:05pm EDT
 
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By John Tilak

TORONTO(Reuters) - Canada's main stock index rose to within 80 points of its record high on Monday as positive investor sentiment spurred gains in its heavyweight financial and energy sectors.

Energy shares benefited as increasing violence in Iraq pushed up the price of Brent crude oil. The energy group has recorded the biggest gain of any major index sector in 2014.

Sunni insurgents seized a mainly ethnic Turkmen city in northwestern Iraq on Sunday after heavy fighting.

The Toronto stock market's benchmark index, which has climbed in 11 of the past 12 sessions, is up more than 10 percent this year.

“The TSX is flying," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver. “The global economy is on a firmer footing, and there’s no huge macroeconomic risk on the horizon.”

“It's a broad-based advance that bodes well for future gains," he added.

The market also awaited U.S. Federal Reserve comments on the direction of its bond-buying program and the prospect of rising interest rates after it holds a policy meeting on Wednesday.

The central bank will continue to monitor the market carefully and stay the course with its current plan of winding down its monetary stimulus program, said Gavin Graham, chief strategy officer at Integris Pension Management Corp.   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch