Strong bank earnings and firm oil and gas prices helped Canadian equities inch up on Wednesday, extending the market’s record-setting run. The S&P/TSX Composite Index added 93 points, or 0.3%, to close at 28,433 — its fourth all-time high in the last five sessions.
Although shares of consumer discretionary and mining companies dragged on the index, the pullback was easily outweighed by strong buying in other main market sectors, such as financials, energy, and industrials.
Top TSX Composite movers and active stocks
Shares of Royal Bank of Canada (TSX: RY) rallied by over 5% to a new all-time high and closed above the $200 mark for the first time ever. The surge came after the largest Canadian bank posted record fiscal July quarter results, with its net income jumping 21% year over year to $5.4 billion and diluted earnings climbing to $3.75 per share.
Last quarter, Royal Bank’s return on equity also improved to 17.7% from 16.4% a year earlier. Strength across all business segments, especially in capital markets, personal and commercial banking, and wealth management, fueled the bank’s earnings beat. Investors cheered the results as evidence of RBC’s ability to deliver strong performance through market cycles. On a year-to-date basis, RY stock is now up 15.4%.
Wesdome Gold Mines, NuVista Energy, and Baytex Energy were also among the top gainers on the Toronto Stock Exchange, with each climbing by at least 2.7%.
On the flip side, Energy Fuels, National Bank of Canada, West Fraser Timber, and Dollarama slipped by at least 3.6% each, making them the day’s worst-performing TSX stocks.
Based on their daily trading volume, Canadian Natural Resources, Cenovus Energy, Manulife Financial, Suncor Energy, and Royal Bank of Canada were the five most active stocks on the exchange.
TSX today
Gold and silver prices extended their gains in early Thursday action, which could lift TSX mining stocks higher at the open today.
While no major domestic economic releases are due, Canadian investors will closely monitor the U.S. quarterly GDP (gross domestic product) and weekly jobless claims data this morning for clues about the health of the world’s largest economy.
As Canadian bank sector earnings continue, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce will release their latest quarterly earnings reports, which could set the tone for financial stocks in today’s session.
Market movers on the TSX today
