TSX keeps recent gains on outlook despite economic jitters
By Fergal Smith
(Reuters) - Canada's main stock index recouped earlier losses to end higher on Monday, as optimism about equities offset Chinese data that revived fears about a global economic slowdown.
The Toronto Stock Exchange's S&P/TSX composite index ended 0.79 points higher at 20,180.60, its highest closing level since June 10.
U.S. stocks added to gains from last week when signs that inflation might have peaked in July increased investor confidence that a bull market could be under way.
"Overall, the market is telling me that unless something new comes up that we haven't factored in yet, it is poised to move higher in the second-half of the year," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
The Toronto market index has climbed about 11% from its July trough but is more than 9% below its record high in April.
The heavily weighted financial sector rose 0.4%, helped by a gain of 9.9% for Home Capital Group Inc after the mortgage lender rejected a takeover bid from a buyer it did not name.
Technology added 0.6%, while industrials ended 0.5% higher.
Meanwhile, U.S. crude oil futures CLc1 settled 2.9% lower at $89.41 a barrel on renewed concerns about reduced fuel demand after data showed China's economy unexpectedly slowed in July. That weighed on the energy sector, which closed down 1.6%.
The materials group, which includes precious and base metals miners and fertilizer companies, was also a drag, losing 1.2% as gold and copper prices fell.
Shares of Turquoise Hill Resources Ltd lost 10.4% after the company rejected an offer by majority shareholder Rio Tinto Ltd to buy the 49% stake it does not already own.
(Reporting by Fergal Smith; Additional reporting by Johann M Cherian and Aniruddha Ghosh in Bengaluru; Editing by Vinay Dwivedi, Krishna Chandra Eluri and Richard Chang)
