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Not one to be shown up, the Toronto Stock Exchange hit an all-time record high on Monday, joining its US counterparts.
The Toronto Stock Exchange’s S&P/TSX Composite climbed 0.3 per cent to a record high of 15,769.66 on Monday — advancing for a fifth straight day, in its longest winning streak since December. That accompanied a quartet of highs in the US with the three major indices and the Russell 2000, the small-cap barometer, hitting all-time highs as investors appeared upbeat on hopes that the Trump administration will propose business tax reforms in coming weeks.
Monday’s rally in the S&P/TSX was built on the back of an advance in healthcare, industrial and financial stocks. The index is now up 3.1 per cent so far this year, compared with a 3.9 per cent advance in US benchmark S&P 500.
And while the Canadian benchmark index has modestly underperformed its US counterpart year-to-date, its 17.5 per cent advance last year, trounced the 9.5 per cent gains recorded by the S&P 500 — the first time it outperformed the S&P in six years.
Last year’s bump was driven by a rally in crude prices that helped drive a 39 per cent rise in the materials sector and a 31.2 per cent rise in the energy sector – the two biggest gainers on the index. Meanwhile, a higher interest rate environment helped lift the financials, the most heavily weighted sector on the S&P/TSX Composite, by 19.3 per cent.
While Canadian equities climbed, the loonie briefly slid against the US dollar as Canadian prime minister Justin Trudeau arrived in Washington to meet with US president Donald Trump.