TSX hits 7-week high as tech and industry climb

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TORONTO — Canada’s main stock index hit its highest closing level in seven weeks on Monday, led by the technology and industrials sectors, as recent strength in corporate earnings helped offset investor concerns about the 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.

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

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“North American corporate earnings have been very strong despite a crazy macro environment,” said Barry Schwartz, portfolio manager at Baskin Financial Services. “Revenues held up well. This is why the stock market hasn’t really fallen.

The TSX has fallen 7.9% since the start of 2022, but that’s far less than some other major global benchmarks, in part because of its heavy weighting in energy stocks.

Rising oil prices have supported earnings for energy companies this year.

The energy group rose 0.3% on Monday, while technology added 1.3% and industrials finished 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 announced they were buying the business.

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

But the Ritchie Bros Auctioneers Inc industrial equipment market was a drag. Its shares fell 17.7% after the company announced it would buy US-based IAA Inc in a cash and stock deal.

Shares of Cronos Group ended down 10.1% after the cannabis company reported a bigger-than-expected loss, hit by a weaker Canadian dollar and lower cannabis flower sales in Canada. (Reporting by Fergal Smith; Additional reporting by Shashwat Chauhan in Bengaluru; Editing by Lisa Shumaker)