Energy stocks push TSX higher, aviation training firm CAE jumps on outlook - Reuters

Aug 9 (Reuters) - Canada's main stock index closed higher in a choppy trade on Wednesday, with strong earnings guidance from aviation training specialist CAE lifting the stock, while energy stocks got a boost from higher oil prices.

Still, investors were waiting for U.S. inflation data due on Thursday for cues on the market's immediate course. The U.S Consumer Price Index for July is expected to show a slight acceleration from last year.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) provisionally closed up 69.29 points, or 0.34 %, at 20,275.27.

"It seems like a market without much direction but the key event to watch out for ... is to see how U.S. consumer price index report looks like," Elvis Picardo, senior portfolio nanager at Luft Financial, iA Private Wealth.

"Inflation concerns have been important drivers of the market, so these data will determine which directions markets would move," Picardo added.

Shares in CAE (CAE.TO) jumped 8% after the company said that it was on track to achieve its growth targets. It was the biggest gainer in the index.

But technology company Nuvei Corp (NVEI.TO) slumped 39% after the firm's quarterly net income more than halved. The stock was the biggest loser in the index.

Shares in Canada's No. 2 life insurer Sun Life Financial Inc (SLF.TO) eased 0.4%. The company reported better-than-expected quarterly earnings late on Tuesday, but flagged "little bit more weakness" in office real estate.

Heavily weighted energy stocks (.SPTTEN) closed up 1% as oil touched new highs on supply tightness due to output cuts by Saudi Arabia and Russia.

Materials stocks (.GSPTTMT) added 1% too as copper prices bounced back from one-month lows on hopes of more economic stimulus for China, the top metals consumer, after data showed consumer sector fell into deflation in July.

"Just another log on the fire - (in the) kind of building the story of an economy (China), that's slowing," said Brian Madden, chief investment officer at First Avenue Investment Counsel.

Investors are bracing for a busy week of earnings in Canada, with the results of cannabis company Trulieve Cannabis (TRUL.CD) and financial services firm Manulife Financial (MFC.TO) due later in the day.

The value of Canadian building permits rose by 6.1% in June from May, data showed.

(This story has been refiled to fix a typo in the headline)

Reporting by Siddarth S in Bengaluru and Divya Rajagopal in Toronto; Editing by Pooja Desai, Shailesh Kuber and Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

Divya Rajagopal

Thomson Reuters

Divya Rajagopal reports on Canada mining sector, where she covers breaking news on critical minerals deals, takeovers and mergers in the mining sector and how miners deal with climate change and ESG imperatives. Divya previously worked as a financial journalist with Economic Times and CNBC TV18 based out of India. She holds a Masters in Global Affairs from the University of Toronto and a Masters in Technology and Social Change from Lund University, Sweden.

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2023-08-09 20:57:00Z
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