TSX notches 7-week high as tech and industrials climb

FILE PHOTO: The facade of the original Toronto Stock Exchange building is seen in Toronto

By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Monday to its highest closing level in seven weeks, led by the technology and industrial sectors, as recent strength in corporate earnings helped offset investor worries about an uncertain economic outlook.

The Toronto Stock Exchange's S&P/TSX composite index ended up 96.10 points, or 0.5%, at 19,545.91, its highest closing level since Sept. 19.

Wall Street also ended higher as investors focused on Tuesday's midterm elections that will determine control of Congress.

"The earnings from North American companies have been very good despite a crazy macro-economic environment," said Barry Schwartz, a portfolio manager at Baskin Financial Services. "The earnings have held up. That's why the stock market hasn't really plummeted."

The TSX has fallen 7.9% since the beginning of 2022 but that is much less than some other major global benchmarks due in part to its heavy weighting in energy shares.

Higher oil prices have bolstered the earnings of energy companies this year.

The energy group rose 0.3% on Monday, while technology added 1.3% and industrials ended nearly 1% higher.

Among individual names, Summit Industrial Income REIT jumped 25.5% after Singapore's sovereign wealth fund, GIC, and Canada's Dream Industrial REIT said they were buying the company.

Mining company SilverCrest Metals climbed 12.4% after announcing it had reached a commercial production milestone at its Las Chispas mine.

But industrial equipment marketplace Ritchie Bros Auctioneers Inc was a drag. Its shares tumbled 17.7% after the company said it would buy U.S.-based IAA Inc in a cash-and-stock deal.

Cronos Group shares ended 10.1% lower after the weed company reported a bigger-than-expected loss, hit by a weakening Canadian dollar and lower cannabis flower sales in Canada.

(Reporting by Fergal Smith; Additional reporting by Shashwat Chauhan in Bengaluru; Editing by Lisa Shumaker)