China data lifts TSX to record closing high

Wed Jul 16, 2014 5:08pm EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index climbed to a record closing high on Wednesday with bullish economic data from China helping to drive up commodity prices and natural resource shares.

Providing further support, figures from the U.S. Labor Department showed producer prices rose more than expected in June with gains across most categories.

China's economic growth picked up slightly in the second quarter, topping market expectations, as the economy benefited from the government's stimulus measures.

The Canadian benchmark index has risen nearly 12 percent this year, more than most of its global peers. Some investors have worried that the gains might be setting the market up for a correction.

“Stocks are reasonably valued, but they're certainly not a screaming bargain," said Bob Gorman, chief portfolio strategist at TD Wealth, who does not expect the recent rally in energy and gold-mining shares to continue in the second half of 2014.

By the end of the year, there will be a convergence of U.S. and Canadian stock market performances, he said.

The Toronto Stock Exchange's S&P/TSX composite index closed up 145.02 points, or 0.96 percent, at 15,226.34. Nine of the 10 main sectors on the index were higher.

Financials, the index's most heavily weighted sector, added 0.7 percent. In the group, Bank of Nova Scotia gained 0.6 percent to C$73.22.   Continued...

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