TSX moves up as Mideast blast lifts commodities, markets catch up after holiday

TSX moves up as Mideast blast lifts commodities, markets catch up after holiday

TORONTO — The main stock index in Toronto closed higher on Tuesday as commodities rose on fears of potential conflict in the Middle East and Canadian markets caught up with their American peers after Monday’s Civic Holiday break.

A massive explosion rocked Beirut on Tuesday, flattening much of the port, damaging buildings across the capital and sending a giant mushroom cloud into the sky.

Lebanon’s health minister said more than 60 people were killed and more than 3,000 injured in the huge explosion for which no immediate cause was known.

In Toronto, the S&P/TSX composite index closed on Tuesday up 198.83 points at 16,368.03.

“It’s still unclear as to the cause of that explosion but it has really turned around a number of the commodities,” said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.

He pointed out gold had been trading lower but recovered, with the December gold contract closing ahead by US$34.70 at a record US$2,021.00 an ounce.

Similarly, oil prices were down early on but the September West Texas Intermediate crude contract closed at US$41.70 per barrel, up 69 cents US.

In response to the higher gold price, B2Gold Corp. rose 3.12 per cent to $9.57, Kinross Gold Corp. was up 3.04 per cent to $12.88 and Barrick Gold Corp. jumped 2.58 per cent to $39.71.

Meanwhile, oilsands producer Suncor Energy Inc. rose 1.8 per cent to $21.45 and pipeline company Enbridge Inc. strengthened by 2.52 per cent to $43.95.

“The market is reacting as though it was a planned explosion of some sort and that’s really driving the action in some of the sectors that are winning today,” said Archibald.

“The energy names are having a really strong day here and then the gold names are also continuing to power higher on the back of a rising commodity.”

Six of the Toronto market’s 11 sectors were positive on the day, led by energy, health care and telecommunications.

The biggest losers were industrials and utilities.

Health care bobbed higher after a big selloff in marijuana stocks last Friday, Archibald said, while investors also demonstrated interest in defensive investments in telecommunications and select utilities.

Industrials were driven lower by weakness in Canadian National Railway Co., off $1.02 at $129.82, and Canadian Pacific Railway Ltd., down $6.76 at $361.61.

The two rallied on Friday on unconfirmed reports that a pair of private equity firms were considering buying the Kansas City Southern railroad in the U.S. but drifted lower Tuesday on a lack of news, Archibald said.

Meanwhile, a slump in Alimentation Couche-Tard Inc. shares helped bring down the staples sector when it emerged that its bid for Marathon Petroleum Corp.’s gas-station business had lost out to the private equity owner of 7-Eleven.

Couche-Tard’s shares fell 32 cents or 0.69 per cent to $46.23.

The Canadian dollar traded for 74.78 US compared with 74.60 on Friday.

The September copper contract was down 1.75 cents at just over US$2.89 a pound.

Markets were listless south of border as negotiations continued on a new stimulus package to help the economy recover from the COVID-19 pandemic lockdowns.

“We haven’t seen any real progress on the file as of yet so I think that’s part of the reason why the U.S. markets are pausing here until we get a little more clarity,” said Archibald.

In New York, the Dow Jones industrial average was up 164.07 points at 26,828.47.

The S&P 500 index was up 11.90 points at 3,306.51, and the Nasdaq composite was up 38.37 points at a record 10,941.17.

— By Dan Healing in Calgary

This report by The Canadian Press was first published Aug. 4, 2020.

Companies in this story: (TSX:ATD.B, TSX:SU, TSX:ENB, TSX:CP, TSX:CNR, TSX:BTO, TSX:K, TSX:ABX)

The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

2020 Ponoka business awards
Ponoka chamber 2020 Business Award winners

The Ponoka and District Chamber of Commerce 2020 Business Awards were held… Continue reading

Ryen Williams, 11, with a lost miniature horse at JJ Collett Oct. 23. Photo by Don Williams
UPDATE: Owner found

Father and son found miniature horse while out for a walk at JJ Collett

Alberta has 3,651 active cases of COVID-19. (File photo)
432 new COVID cases sets another record Friday

Central zone holds steady at 126 active cases

(Emily Jaycox/Ponoka News)
Ponoka FCSS’ Empty Bowls sells out

For the first time ever, Ponoka Family and Community Support Services’ (FCSS’s)… Continue reading

"We are looking seriously at the spread and determining what our next steps should be," says Alberta’s chief medical officer of health, Dr. Deena Hinshaw, as the daily number of COVID-19 cases continues to climb.
427 new COVID cases is highest in Alberta ever

Central zone has 126 active cases of COVID-19

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

U.S. border officers at the Peace Arch crossing arrested two men on California warrants this week. (File photo)
Ottawa predicts system delays, backlogs unless court extends life of refugee pact

Canada and the United States recognize each other as safe places to seek protection

Conservative member of Parliament Michelle Rempel Garner, left to right, Conservative Leader Erin O’Toole and Conservative Deputy Leader Candice Bergen arrive to hold a press conference in Ottawa on Thursday, Oct. 22, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No-confidence showdown over sweeping Tory motion on government handling of pandemic

The Conservative motion is to be put to a vote Monday and has the support of both the Bloc Québécois and NDP

Marissa Cunnington. (Emily Jaycox/Ponoka News)
NARCHC year end horse show photos and results

The Northern Alberta Reined Cow Horse Club (NARCHC) held its futurity, derby… Continue reading

From l-r., first lady Melania Trump, President Donald Trump, moderator Kristen Welker of NBC News, Democratic presidential candidate former Vice President Joe Biden and his wife Jill Biden on stage at the conclusion of the second and final presidential debate Thursday, Oct. 22, 2020, at Belmont University in Nashville, Tenn. (AP Photo/Patrick Semansky)
Trump, Biden fight over the raging virus, climate and race

Republican president declared the virus, which killed more than 1,000 Americans on Thursday alone, will “go away.”

Smartphone showing various applications to social media services and Google. (Pixabay photo)
National media calling for level playing field with Google, Facebook

In Canada, Google and Facebook control 80 per cent of all online advertising revenues

RCMP. (Black Press File Photo)
Calgary man dies in two-vehicle collision near Sylvan Lake

A semi truck collided with a SUV just east of Hwy. 781 on Hwy 11.

RCMP. (Phil McLachlan - Black Press Media)
British Columbia man dies during ski trip near glacier west of Calgary

Kananaskis Public Safety and Alpine Helicopters responded around 2:30 p.m.

Most Read