TSX rises to record high as energy, industrials climb

·2-min read
The facade of the original Toronto Stock Exchange building is seen in Toronto

By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose to a record high on Thursday as a jump in oil prices boosted energy shares and industrials gained further ground, with the market adding to solid gains the day before.

The Toronto Stock Exchange's S&P/TSX composite index ended up 105.54 points, or 0.5%, at 20,795.12, a record closing level.

"The TSX is building on a strong start to the month of September," said Brandon Michael, senior investment analyst at ABC Funds. "Two key sectors, technology and industrials are reaccelerating and leading the market higher during this next advancing phase."

Industrials rose 1.1% to a record high, while the energy group ended up 3.3%. U.S. crude prices settled 2.0% higher at $69.99 a barrel after U.S. crude inventories fell more than anticipated.

Shares of power sports manufacturer BRP Inc rallied 11.1% after the company reported second-quarter results that beat analysts estimates.

The Toronto market has scaled record highs along with the move higher in global stocks as hopes of continued loose monetary policy have offset signs that a post-pandemic economic recovery is beginning to slow.

The U.S. jobs figures on Friday could offer clues on the timing of the Federal Reserve's stimulus taper. The Bank of Canada, which is also buying bonds to support the economy, is due to make an interest rate decision next week.

Investors have also shrugged off uncertainty related to a Sept. 20 election in Canada, with polls showing the ruling Liberal party and its main rival in a tight race.

A recent Reuters poll showed the TSX was expected to extend its record-setting rally in 2022.

(Reporting by Fergal Smith; additional reporting by Sagarika Jaisinghani and Devik Jain in Bengaluru; editing by Richard Pullin)

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