TSX seals record winning streak as resource shares gain

10/25/2021 | 04:54pm

TORONTO (Reuters) - Canada's main stock index on Monday rose for a 14th straight session to notch a record high as resource shares climbed, while a battle for control of the board at Rogers Communications Inc weighed on the company's share price.

The Toronto Stock Exchange's S&P/TSX composite index ended up 68.69 points, or 0.3%, at 21,284.84, a record closing high. The winning streak is the longest in Reuters data going back to 1979.

The TSX has a heavy weighting in financial and resource stocks, which do well as inflation rises and interest rates go up, said Norman Levine, managing director at Portfolio Management Corp.

It's the Toronto market's "time to shine in the sun," Levine added.

The energy group was up 1.9% as oil prices rose to multiyear highs before steadying, while the materials group, which includes precious and base metals miners and fertilizer companies, added 1.5%.

Spot gold was up 0.8% at about $1,806 per ounce as worries about inflation lifted the safe-haven asset ahead of major central bank meetings this week.

The Bank of Canada on Wednesday is expected to raise its inflation forecast and to largely end stimulus from its pandemic-era bond buying program, starting a countdown of sorts to the first interest rate hike since October 2018.

Among the biggest gainers on the TSX was Cominar REIT. Its shares rose 12.1% after an investor group led by Canadian real estate company Canderel agreed to take Cominar private in a C$2.14 billion ($1.73 billion) deal.

Rogers shares ended 5.8% lower as a family feud over control of the board deepened after rival factions claimed they were in charge of one of Canada's largest telecom companies.

Shares of Restaurant Brands International Inc, owner of Burger King and Tim Hortons, fell 4.8% after the company missed estimates for quarterly revenue.

(Reporting by Fergal Smith; Additional reporting by Shreyashi Sanyal, Anisha Sircar and Medha Singh in Bengaluru; Editing by Jonathan Oatis)

By Fergal Smith

© Reuters 2021
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