August 1, 2017 / 1:38 PM / 3 months ago

TSX posts one-week high as earnings boost industrials, technology

TORONTO (Reuters) - Canada’s main stock index rose on Tuesday to a one-week high as gains for companies reporting strong earnings, including airline Air Canada and e-commerce company Shopify Inc, offset losses for energy shares.

Businessmen pass the Toronto Stock Exchange sing in Toronto, Ontario, Canada July 6, 2017. REUTERS/Chris Helgren

The Toronto Stock Exchange’s S&P/TSX composite index rose 58.23 points, or 0.38 percent, to 15,202.10, its highest close since July 25.

Gains for the index came as The Dow Jones Industrial Average racked up a fifth straight record high.

“We are seeing very good (U.S. and Canadian) corporate results which means the positive momentum in equity markets can continue,” said Manash Goswami, a portfolio manager at First Asset.

Air Canada surged to an all-time high after its second-quarter profit handily beat analysts’ estimates. It ended up 9.6 percent at C$21.74.

Its smaller rival, WestJet Airlines Ltd, also topped expectations, and its shares gained 3.0 percent to C$25.60.

The overall industrials group rose 0.9 percent as railroad stocks also climbed, while information technology jumped 2.9 percent.

Shopify, the Ottawa-based company that counts Procter & Gamble Co among its customers, surged 13.7 percent to C$130.61 after reporting a smaller-than-expected loss and a 75 percent jump in revenue.

Eight of the index’s 10 main groups ended higher, including a 0.3 percent gain for the heavily weighted financial services group.

Toronto-based Thomson Reuters rose 5.4 percent to C$60.17 after the information services provider reported higher-than-expected second-quarter earnings, helped by demand for market data, and increased its full-year forecast for margins and adjusted earnings per share.

Hudson’s Bay Co rose 5.1 percent to C$11.21, building on a 2.6 percent gain the day before when activist investor Land and Buildings Investment Management threatened a proxy war at the Canadian retailer if it did not take steps to “enhance shareholder value.”

The materials group, which includes precious and base metals miners and fertilizer companies, gained 0.2 percent.

Gold prices rose to a seven-week high after tepid U.S. economic data raised the question of whether the Federal Reserve will raise interest rates in the coming months.

But the energy group, which accounts for one-fifth of the index’s weight, retreated 0.7 percent as crude prices slipped from a two-month high, with major oil producer Suncor Energy Inc down 0.8 percent at C$40.36.

U.S. crude oil prices settled 2 percent lower at $49.16 a barrel.

Additional reporting by Alastair Sharp; Editing by W Simon; Editing by Sandra Maler

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