Weed firms lift TSX to near 3-month high amid global stock rally

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch/File Photo

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Feb 9 (Reuters) – Canada’s main stock index rose to a near three-month high on Wednesday, lifted by cannabis stocks, and tracking a global rally in equities on upbeat earnings and easing geopolitical tensions.

At 10:02 a.m. ET (15:02 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was up 193.72 points, or 0.91%, at 21,570.9.

Moderating tensions between the West and Russia over Ukraine, and a string of upbeat earnings lifted global sentiment for risk assets.

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“Risk appetite has improved heading into today’s open after a raft of generally positive earnings results, while the unrelenting climb in global bond yields is also taking a breather,” said Candice Bangsund, vice president and portfolio manager, global asset allocation, at Fiera Capital Corporation.

“Still, the risk of further financial market volatility looms ahead of tomorrow’s closely-watched U.S. inflation results,” Bangsund added.

U.S. consumer prices are expected to have risen to a 40-year high at 7.3% year-on-year in January, according to economists polled by Reuters.

Bank of Canada Governor Tiff Macklem is due to speak at the Canadian Chamber of Commerce on Wednesday, where he is likely to offer clues on the path for policy tightening.

The energy sector (.SPTTEN) climbed 1.9% as U.S. crude prices rose 0.3% a barrel, while Brent crude added 0.5%. Oil prices were stable around $90 a barrel, but the prospect of increased supply from Iran and the U.S. kept pressure on the market.

Pot producer Canopy Growth Corp (WEED.TO) rose 10.9% after posting a smaller third-quarter loss.

Canada-based Sundial Growers (SNDL.O) jumped 11.7% after Nasdaq granted the cannabis producer and retailer a 180-day extension to regain compliance with the minimum bid requirement.

Shares of other weed stocks including Cronos Group (CRON.TO), Tilray Inc and Hexo (HEXO.TO) rose between 3.6% and 5.3%.

The materials sector (.GSPTTMT), which includes precious and base metals miners and fertilizer companies, added 0.7% as gold futures rose 0.2% to $1,829.6 an ounce.

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Reporting by Anisha Sircar in Bengaluru;
Editing by Vinay Dwivedi

Our Standards: The Thomson Reuters Trust Principles.

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