TSX at record high for first time since 2008, obstacles loom

Wed Jul 2, 2014 6:11pm EDT
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By John Tilak and Alastair Sharp

TORONTO (Reuters) - Canada's main stock index hit its highest-ever level on Wednesday as stronger-than-expected U.S. private sector jobs data helped lift banks, oil companies and miners.

The bump into territory last visited before the financial crisis could yet be threatened by the larger non-farm payrolls data from the U.S. government on Thursday.

The advances have renewed concerns that valuations might be getting stretched.

"The market just doesn't want to lie down. It is chugging ahead and probably moving into overbought territory," said David Cockfield, managing director and portfolio manager at Northland Wealth Management.

"There's a lot of investment money out there," he added. "The market will continue to drift up until something causes a shock. It's a bit unnerving that the market hasn't had a shakeout."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended 63.78 points higher, or up 0.42 percent, at 15,209.79.

It traded as high as 15,223.04 in the session. The all-time high was the first since 2008.

The milestone comes on the heels of the Canadian benchmark index’s gains in 11 of the previous 12 months and an 11.5 percent rise since the start of the year.   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch