TSX posts biggest monthly gain since November as political risk potentially peaks
TSX ends down 0.1% at 26,175.05
For the month, the index gains 5.4%
First-quarter GDP increases 2.2%
May 30 – Canada’s main stock index edged lower on Friday as energy and metal mining shares lost ground, but the index still posted its biggest monthly advance since November, helped by easing global trade tensions.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 35.51 points, or 0.1%, at 26,175.05, its second straight day of declines after posting a record closing high on Wednesday. For May, the index was up 5.4%.
“I wouldn’t be surprised to see some consolidation after a big run, but intermediate-term the path of least resistance is up,” said Joseph Abramson, co-chief investment officer at Northland Wealth Management. “I think that political risk has peaked in terms of tariffs.”
The U.S. has suspended in recent weeks some of the sweeping tariffs it has imposed on goods from other countries, while Canada’s economy has fared better during the first few months of the global trade war than some economists had expected.
Canadian gross domestic product increased at an annualized rate of 2.2% in the first quarter, beating estimates for a gain of 1.7%.
The energy sector fell 1.8% on Friday as the price of oil settled 0.25% lower at $60.79 a barrel and after oil sands company MEG Energy said it evacuated all nonessential workers from its Christina Lake production facility in northern Alberta due to wildfires burning in the area. The company’s shares ended 2.8% lower.
The materials group, which includes metal mining shares, also lost ground as the price of gold dipped.
Heavily weighted financials added 0.2%, and were up 1.3% for the week in which Canada’s biggest banks reported quarterly earnings.
This article was generated from an automated news agency feed without modifications to text.
