TSX posts biggest gain in 15 months as 'dip buying' boosts tech shares

·2 min read
The facade of the original Toronto Stock Exchange building is seen in Toronto

By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rebounded from a one-year low on Friday, led by sharp gains for energy and beaten-down technology stocks, but the market still added to its weekly losing streak.

The Toronto Stock Exchange's S&P/TSX composite index ended up 400.76 points, or 2%, at 20,099.81, its biggest gain since February 2021.

A global rally in technology stocks helped drive the market higher, said Jules Boudreau, economist at Mackenzie Investments

"Growth stocks in general around the world are around levels where you would expect some dip buying to come in," Boudreau said.

Wall Street also rallied, ending a week of wild market gyrations marked by signs of peaking inflation and worries that the Federal Reserve might tighten policy too aggressively.

The Toronto market's technology sector rose 6%. It was helped by a 31.3% jump in the shares of Lightspeed Commerce Inc and a gain of 12.4% for e-commerce giant Shopify Inc.

Energy ended 3.9% higher as oil prices climbed. U.S. crude oil futures settled up 4.1% at $110.49 a barrel on fears supplies would tighten if the European Union bans Russian oil.

Canada's competition bureau said that its decision to start litigation to block a bid by Rogers Communications for Shaw Communications does not mean a settlement cannot be reached. Shares of Shaw rose 2.7%.

Still, the TSX was down 2.6% for the week, its seventh consecutive week of losses. On Wednesday, the index confirmed a correction by closing more than 10% below its record-high closing level from March 29, while it fell on Thursday to its lowest since May 2021.

"The TSX had been hanging in a lot better than other global markets," said Gregory Taylor, portfolio manager at Purpose Investments. "What we saw is that people finally started selling their winners to fund problems in other parts of their portfolios."

(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Marguerita Choy)

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