TORONTO — A broad rally led by the information technology sector helped the Toronto Stock Exchange close higher on Tuesday, despite pullbacks from energy and materials groups, which were reacting to possible progress in negotiations. in Ukraine and Russia.
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The market also got a thumbs up when Russia suggested it would move its military forces away from the city of Kyiv, observed Colin Cieszynski, chief market strategist at SIA Wealth Management.
“Europe ended its session with very good gains today, and those of the American markets accelerated throughout the day,” he explained in an interview.
The Toronto floor’s S&P/TSX Composite Index advanced 109.39 points to end the session with 22,087.22 points.
In New York, the Dow Jones Industrial Average rose 338.30 points to 35,294.19 points. The broader S&P 500 index advanced 56.08 points to 4631.60 points, while the Nasdaq Composite index grabbed 264.74 points to 14,619.64 points.
Mr. Cieszynski noted that the market moves marked a reversal from where they were. Sectors that have performed well lately, such as energy and materials, are correcting, while those that had performed less well, such as small caps and technology, are recovering.
“I wouldn’t necessarily say people have become overly optimistic, but it seems some of the fears have dissipated and some people are at least trying to get into bargain hunting, returning to sectors that have been depressed. “, he observed.
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Nine of the TSX’s 11 sectors advanced on Tuesday, with information technology in the lead. It gained 3.0%, as shares of Lightspeed Commerce climbed 8.3% and those of Shopify 5.8%.
The sector rebounded following being severely depressed, supported by lower bond yields during the day.
“I don’t think anything has fundamentally changed in the tech industry. It’s just more of a place where the oversold has probably been bigger,” Cieszynski said.
The healthcare group rose 2.4%, while the consumer discretionary group advanced 2.5%.
The energy sector fell along with crude oil prices, which fell on reported progress in talks to end the war in Ukraine. The head of the Russian delegation, Vladimir Medinsky, said the latest meeting was a step towards a compromise, although he added that the two sides still have a long way to go before reaching an agreement.
On the New York Commodities Exchange, crude oil prices fell US$1.72 to US$104.24 a barrel, while natural gas fell US$20.8 cents to $5.33 US per million BTU.
The price of gold plunged US$26.70 to US$1,918.00 an ounce, while that of copper took less than 1 cent to US$4.73 a pound.
In the currency market, the Canadian dollar traded at an average rate of 79.94 cents US, up from 79.41 cents US the previous day.
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