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Highlights
- On November 16, the index had achieved a new intraday high of 21,796.16 by gaining 34.08 points.
- The Canadian energy sector remained strong throughout the year and was the top performer in 2021.
- The country's main stock index performed well throughout the year, and on November 12, it set a new record by gaining 186.55 points and closed at 21,768.53.
The COVID-19 pandemic continued to affect human life in 2021. However, it was an overall good year for Canadian investors.
Canadian equities market's main index- S&P/TSX Composite, achieved new feats this year and set a new record in mid-November.
Let's look at how the Canadian markets performed in 2021:
S&P/TSX Composite Index sets a new record
The country's main stock index performed well throughout the year, and on November 12, it set a new record by gaining 186.55 points and closed at 21,768.53.
During the trading session, the S&P/TSX Composite Index had hit an intraday high of 21,733.05. A significant gain led to the rally in cannabis stocks and the largest e-commerce company Shopify Inc (TSX:SHOP).
On November 16, the index had achieved a new intraday high of 21,796.16 by gaining 34.08 points and ended the trading day at 21,697.66.
Also Read: 5 top e-commerce stocks of 2021 in Canada
The surge was due to gains in technology shares and a few stocks from industrial and consumer staples sectors.
Earlier in October, the main index had made gains for 14 consecutive trading sessions. This was the longest rally of daily gains in more than 30 years.
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Sectors that boosted Canada's main index's growth
The Canadian energy sector remained strong throughout the year and was the top performer in 2021 as crude oil prices surged and energy companies offered dividend hikes and share buyback programs.
The surge in Canadian real estate prices also boosted S&P/TSX Composite's performance. In addition, overall good performance from the financial sector played an important role in setting new records.
Bottom line
The Toronto Stock Exchange witnessed a bullish momentum in 2021. However, the latest variant of the coronavirus has dashed hopes of a solid finish compared to the post-financial crisis in 2009.
When the world was facing a financial crisis in 2008, the Canadian main index had declined by 35.03 per cent. In 2009, it had made a strong comeback by delivering an overall return of about 30.7 per cent.
In 2021, the S&P/TSX Composite Index's year-to-date (YTD) return was 22.15 per cent at the time of writing. The overall return fell short compared to the 30.7 per cent return as the market was affected to a sudden surge in coronavirus cases worldwide due to the Omicron variant.
Also Read: 5 TSX stocks that rallied big time in 2021
