The TSX Composite Index on Friday, November 12, grew 0.86 per cent, 186.55 points, to set a new all-time closing high of 21,768.53 points. The healthcare sector gained almost five per cent, led by cannabis stocks. In fact, the top two gainers Friday were Canopy Growth and Aurora Cannabis Inc.
With the GOP expected to introduce a bill south of the border, the US could finally see marijuana legalized soon. The Democrats have generally been for legalization. Canadian pot stocks have been rallying since the news broke November 8. The S&P/TSX Cannabis Index gained nearly nine per cent Friday and is up 22.28 per cent month-to-date.
IT gained over four per cent and base metals and financials were up as well. With the traditionally strong holiday season, there is every chance the benchmark index can break the 22,000-mark before 2022.
One-year price chart (November 12). Analysis by Kalkine Group
Enbridge Inc was easily the most traded stock with 28.96 million shares trading hands as it continued to hemorrhage with the Line 5 pipeline still in limbo. It is certain to be discussed at next week’s ‘Three Amigos’ summit. The ENB stock lost 3.65 per cent Friday.
Aleafia Health Inc saw 9.7 million shares switch ownership, making it the second most traded stock and HEXO Corp saw 8.23 million shares exchanging hands.
Movers and laggards
Wall Street update
The ‘Three Amigos’ summit was last held in 2016 when President Barack Obama hosted Prime Minister Justin Trudeau and President Enrique Peña Nieto. Trump while president shelved the summit. Biden is set to host the summit November 18. Apart from Line 5, they are set to discuss tax credits for US-made EVs which Canada says will hurt the broader auto industry across the continent and result in job losses.
The three main indices began to rally by late morning and were able to post gains. The Dow was up 179.08 points, 0.5 per cent, to 36,100.31 points. The S&P 500 grew by 33.58 points, 0.72 per cent, to 4,682.85 points and Nasdaq by 156.68 points, or one per cent, to 15,860.96 points.
Gold up, oil plummets
Gold was up 0.25 per cent and traded at US$ 1,868.50. Brent oil fell 0.84 per cent to US$ 82.17/bbl, while crude oil plunged 0.98 per cent to US$ 80.79/bbl.
The loonie gained 0.28 per cent against the US dollar, while USD/CAD ended in the red at 1.2542. The US Dollar Index lost 0.05 per cent against the basket of major currencies Friday and ended at 95.13.
The US 10-year bond yield fell 0.54 per cent Friday to 1.570 while the Canada 10-year bond market was down by 1.3 per cent to 1.675.