Toronto market scales record high on rotation into technology

10/18/2021 | 05:54pm

TORONTO (Reuters) - Canada's main stock index climbed to a record high on Monday as investors scooped up high-flying technology companies, switching out of more defensive stocks such as utilities and telecommunications.

The Toronto Stock Exchange's S&P/TSX composite index ended up 57.27 points, or 0.3%, at 20,985.37, a record closing high.

The S&P 500 and the Nasdaq Composite also closed higher as investors appeared optimistic about the third-quarter earnings season.

There is "a little bit of rotation back to some of the secular growth winners," said Mike Archibald, a portfolio manager at AGF Investments.

"Shopify, Constellation are both having a good day. That's moving the IT (information technology) space, which is the big driver of the market."

Shares of cloud-based commerce platform company Shopify Inc, which has the largest market capitalization on the TSX, rose 2.9%, while Constellation Software Inc was up 2.7%.

Information technology ended up 1.1%, while industrials climbed 0.7% and the heavily-weighed financial services group ended up 0.2%.

After snapping a seven-month winning streak in September, the Canadian equity index has gained 4.6% so far this month, aided by strength in commodity prices.

Energy shares gave back some recent gains on Monday, declining 1.2%. Utilities were down 0.2%, while Rogers Communications Inc and BCE Inc, two of Canada's biggest telecom companies, fell 0.5% and 0.4% respectively.

Some of the Toronto market's biggest gainers were uranium producers, with Cameco Corp advancing 5.9% and Denison Mines Corp jumping 12.8%.

(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Sandra Maler)

By Fergal Smith

© Reuters 2021
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