Canada stocks to hit record highs on energy rebound: Reuters poll

Thu Jun 26, 2014 10:25am EDT
 
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By John Tilak

TORONTO (Reuters) - Canadian stocks will probably set record highs this year and next, lifted by strength in the energy sector and an improving global outlook, a Reuters poll showed on Thursday.

Buoyed by an increasingly stable global economy and easy monetary policies across the world, stock markets have been steadily advancing. The Canadian equities market, which lagged behind its global peers in 2013, has finally caught up.

The Toronto Stock Exchange's S&P/TSX composite index is expected to build on recent strong momentum to end 2014 with double-digit growth, but the advance from current levels will be somewhat muted.

The median forecast in the poll of 38 market analysts showed the index reaching 15,300 by the end of 2014, up 12 percent from the start of the year and 2 percent from Wednesday's close.

The data also projected the index would hit 15,850 by the middle of 2015.

"The broad theme for the rest of this year is a modest but continued rebound," said Edward Jones strategist Craig Fehr. "I have a fair amount of confidence that the global economy is on the upswing.

"The fact that the TSX has finally started to get some legs this year is a reflection of the rebound in energy and materials," he added.

The Canadian benchmark, up about 10 percent this year, has outperformed most major equity indices so far. It hit a record closing high last week but failed to crack the all-time intraday high of 15,154.77 touched in June 2008.   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch