S&P/TSX Composite Closes at Record High as Materials, Energy and IT Push Market Up

Toronto benchmark edges up 0.24% with notable gains in uranium and energy names; commodities and FX show mixed moves

By Marcus Reed EFR NXE

S&P/TSX Composite Closes at Record High as Materials, Energy and IT Push Market Up

EFR NXE

The S&P/TSX Composite finished higher on Wednesday, advancing 0.24% to reach a new record high. Strength in the Materials, Energy and IT sectors underpinned the advance, with a handful of miners and energy-related names posting double-digit percentage gains. Volume breadth across the Toronto exchange was narrowly positive while key commodity contracts and FX pairs moved unevenly.

Key Points

S&P/TSX Composite rose 0.24% to reach a new all-time closing high, led by gains in Materials, Energy and IT sectors.
Top performers included Energy Fuels Inc. up 14.48% to 37.55, Denison Mines up 8.97% to 5.83, and NexGen Energy up 8.53% to 18.84.
Breadth was narrowly positive with 491 stocks higher, 475 lower and 76 unchanged; S&P/TSX 60 VIX eased to 14.90, while gold and oil prices moved higher.

The Toronto stock market closed in positive territory on Wednesday, with the S&P/TSX Composite rising 0.24% to register a fresh all-time closing high. Gains were concentrated in the Materials, Energy and IT sectors, which collectively lifted the index into record territory.

Leading the session's winners was Energy Fuels Inc. (TSX:EFR), which jumped 14.48% - an increase of 4.75 points - to finish at 37.55. Denison Mines Corp (TSX:DML) climbed 8.97% or 0.48 points to close at 5.83, and NexGen Energy Ltd. (TSX:NXE) rose 8.53% or 1.48 points to end the day at 18.84.

On the downside, apparel retailer Aritzia Inc (TSX:ATZ) slipped 6.21%, losing 7.15 points to settle at 107.94. Curaleaf Holdings Inc (TSX:CURA) fell 5.99% or 0.20 points to 3.14, while Lithium Americas Corp (TSX:LAC) declined 4.69%, a 0.40-point decrease, to close at 8.13.

Breadth on the Toronto Stock Exchange was narrowly positive, with 491 stocks advancing, 475 declining and 76 finishing unchanged.

Several names reached notable milestones during the session. Shares of Energy Fuels Inc. rose to five-year highs, and Denison Mines Corp also attained five-year highs. NexGen Energy Ltd. advanced to all-time highs during the trading day.

Volatility as measured by the S&P/TSX 60 VIX eased, falling 2.36% to 14.90, indicating a modest reduction in implied option volatility for the Toronto benchmark.

Commodities showed mixed results. April gold futures gained significantly - an increase of 5.75% or 294.24 - to trade at 5,414.84 per troy ounce. In energy markets, March crude oil futures rose 1.80% or 1.12 to settle at 63.51 a barrel, while the April Brent contract increased 1.53% or 1.02 to trade at 67.61 a barrel.

Foreign exchange movements were limited. The Canadian dollar was essentially unchanged against the U.S. dollar - showing a 0.23% move to 0.74 - while CAD/EUR rose 0.99% to 0.62. The U.S. Dollar Index Futures ticked up 0.14% to 96.19.

Summary of market movers and indicators:

Top gainers: Energy Fuels Inc. (TSX:EFR), Denison Mines Corp (TSX:DML), NexGen Energy Ltd. (TSX:NXE).
Top losers: Aritzia Inc (TSX:ATZ), Curaleaf Holdings Inc (TSX:CURA), Lithium Americas Corp (TSX:LAC).
Breadth: 491 advancers, 475 decliners, 76 unchanged.
Volatility: S&P/TSX 60 VIX down to 14.90.

Risks

Narrow breadth - the close was achieved with a slim margin between advancing and declining stocks, suggesting the rally may be concentrated in a subset of sectors such as Materials and Energy.
Volatility uncertainty - although the S&P/TSX 60 VIX fell to 14.90, option-implied volatility remains a factor that could change market dynamics.
Commodity price swings - sizable moves in commodities like gold and oil could introduce volatility to miners and energy companies that were key drivers of the market advance.

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S&P/TSX Composite Closes at Record High as Materials, Energy and IT Push Market Up

Key Points

Risks

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