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Summary
- The main Canadian stock exchange index flirted with previous peak of 17970.51 attained in February 2020.
- The index rose on the back of cannabis and renewable energy stocks that held high on hopes of Democrat-controlled Senate in the United States.
- However, the tech index lost 1.77 per cent on fears of Democratic Government cracking on tech companies.
The S&P/TSX Composite Index briefly hovered near its all-time high during Wednesday’s (January 7) intraday trading, after climbing up to 17,924 points. The index closed at 17828.11, up 145.6 points or 0.82 per cent, boosted by gains in cannabis and renewable energy stocks that held high on hopes of Democrat-controlled Senate in the United States.
Canada’s benchmark stock index had hit a record high of 17970.51 in February 2020, days before the pandemic-led market crash.
The TSX Composite Index is hovering near its previous peak of 17970.51 in February 2020 / Source: Refinitive, Thomson Reuters
Wednesday’s gains were led by healthcare stocks, which gained 5.90 per cent, followed by metals and mining that raked up 3.08 per cent and financials that added 1.93 per cent.
Brent oil closed above US$54 a barrel, up 1.31 per cent, while crude ended over US$50, up 1.40 per cent. The high oil prices helped boost Canadian energy stocks for a second consecutive day.
Meanwhile, stocks of HempFusion Wellness Inc rocketed by 50 per cent during their debut on the TSX, setting the tone for a upcoming pot firm IPOs in North American markets.
As pot stocks surged on the blue wave in the US, stocks of Cronos Group went up by 14.2 per cent, followed by Aphria and Canopy Growth, both of which climbed above 11 per cent.
On the other side, the TSX tech index lost 1.77 per cent, following cues of tech-heavy Nasdaq composite doffing 78.17 points on fears of Democrat US President Joe Biden-led crackdown on tech companies. Docebo plunged by 5.36 per cent while Kinaxis lost 3.8 per cent.
The TSX Venture Composite index dropped by 2.33 points or 2.5 per cent to settle above 897.
On the south of the border, US equity indices traded in the mix, impacted by the ousting of Chinese telecom firms and the breach of US Capitol Hill.
The Dow Jones industrial average and S&P 500 index increased by 437.80 points and 21.28 points, respectively.
Thursday could end up being a crucial day for stock markets as investors closely follow the political developments in the US and also await with bated breath TSX approaching its peak point.
